Problem
McEwen Company has budgeted the following credit sales during the last four months of the year: September, S 16,000; October, $22,000; November $21,000; December. $24,000. Experience has shown that payment for the credit sales is received as follows: 20% in the month of sale, 55% in the first month after sale, 20% in the second month after sale, and 5% uncollectible. How much cash can McEwen Company expect to collect in November as a result of credit sales?