Question 11 5 pts Wright Corporation began its operations on

Question 11 5 pts Wright Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business are $240,000, $300,000, and $420,000, respectively, for September, October, and November. The company expects to sell 20% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month of the sale, 25% in the month following the sale, and the remainder in the following month. The cash collections from accounts receivable (i.e., not including cash sales) in September are: O $%192,000 O $%168,000 $240,000 $134,400

Solution

ANSWER - $134,400

EXPLANATION -- Cash collections in month of September are (not including cash sales) --

=($240,000 x 80% x 70%) = $134,400