Question - 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:
Oct. - $106,000
Nov. - $125,000
Dec. - $149,000
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 December?