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Budgeted sales in Acer Corporation
Budgeted sales in Acer Corporation over the next four months are given below:
September October November December
Budgeted sales $140,000 $150,000 $170,000 $130,000
Twenty-five percent of the company's sales are for cash and 75% are on account. Collections for sales on account follow a stable pattern as follows: 50% of a month's credit sales are collected in the month of sale, 30% are collected in the month following sale, and 15% are collected in the second month following sale. The remainder are uncollectible. Given these data, find cash collections for December.
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