Rodney Company Has the Following Sales Budget Collections of Credit Sales Are 50% in the Month of }&\text

question 90

Multiple Choice

Rodney Company has the following sales budget:
$\begin{array}{lll}\text { Month }&\text { Cash Sales }&\text { Credit Sales }\\\text { September } & \$ 100,000 & \$ 250,000 \\\text { October } & 125,000 & 180,000 \\\text { November } & 130,000 & 210,000 \\\text { December } & 135,000 & 190,000\end{array}$
Collections of credit sales are 50% in the month of sale,40% in the month following sale,and 10% two months following sale.No uncollectible accounts are expected.What are the estimated cash collections in September from September sales?

• A) $100,000
• B) $200,000
• C) $225,000
• D) $250,000

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