Hatfield Company Has the Following Budgeted Credit Sales for the Last

question 146

Multiple Choice

Hatfield Company has the following budgeted credit sales for the last four months of the year-September, $13,000; October, $19,000; November $20,000; December, $24,000. Experience has shown that payment for the credit sales is received as follows: 10% in the month of sale, 60% in the first month after sale, 20% in the second month after sale, and 10% uncollectible. How much cash can Hatfield Company expect to collect in November as a result of credit sales?

• A) $11,400
• B) $13,400
• C) $14,000
• D) $16,000

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