Q1) Wright Corporation started its operations on Sept. 1 of present year. Forecasted sales for first three months of business are $240,000, $300,000, and $420,000 respectively for Sept, Oct, and Nov. Company expects to sell 20% of those sales for cash and 80% on account. Of sales on account, 70% are expected to gather in month of sale, 25% in month following sale, and 5% in next month.
In October total cash collections are expected to be:
i) $300,000
ii) $276,000
iii) $216,000
iv) $168,000
v) $ 60,000