Reference no: EM132803231

East Company budgeted the following credit sales during the current year:

August $90,000

September, $100,000;

October, $110,000;

November, $90,000;

December,$100,000.

Experience has shown that cash from credit sales is received as follows:

30% in the month of sale, (All collections in the month of sale are subject to 1 percent cash discount.)

50% in the first month after sale,

17% in the second month after sale, and

3% is uncollectible.

Required:

Problem 1: How much total cash can East Company expect to collect in November?