Lightning-Bug Products Company is preparing a cash receipts schedule for the fourth quarter of 200X. Total sales for August and September of 200X are $130,000 and $110,000, respectively.
Budgeted sales for the fourth quarter of 200X follow:
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Oct.
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Nov.
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Dec.
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Budgeted total sales
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$106,000
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$125,000
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$149,000
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25% of sales are for cash; the remaining 75% are on account. Ten percent of the sales on account are collected in the month of sale, 70% in the month following the sale, and the remaining 20% in the second month following the sale. Lightning-Bug Products does not anticipate any uncollectible accounts.
Determine the cash collected in October:
$119,480
$112,080
$132,680
$111,700