Reference no: EM132574489

Question - On October 1 of the current year, Molloy Corporation prepared a cash budget for October, November, and December. All of Molloy's sales are made on account. The following information was used in preparing estimated cash collections:

August sales (actual) $50,000

September sales (actual) $60,000

October sales (estimated) $30,000

November sales (estimated) $80,000

December sales (estimated) $70,000

Approximately 65% of all sales are collected in the month of the sale, 20% is collected in the following month, and 15% is collected in the month thereafter.

Find the Budgeted collections from customers in October?

a. $49,500.

b. $39,000.

c. $31,500.

d. $140,000.