West Company Budgeted the Following Credit Sales During the Current

question 108

Essay

West Company budgeted the following credit sales during the current year: September, $75,000; October, $108,000; November, $90,000; December, $96,000.Experience has shown that cash from the credit sales is received as follows: 10% in the month of sale, 50% in the first month after sale, 35% in the second month after sale, and 5% is uncollectible.All collections in the month of sale are subject to 2 percent cash discount.
Required: How much total cash can West Company expect to collect in November?