Wright corporation began its operations on sept 1 of the

Reference no: EM13355563

Wright Corporation began its operations on Sept. 1 of the current year. Forecasted sales for the first three months of business are $240,000, $300,000, and $420,000 respectively for Sept, Oct, and Nov. The company expects to sell 20% of those sales for cash and 80% on account. Of the sales on account, 70% are expected to collected in the month of the sale, 25% in the month following the sale, and 5% in the next month.

In November total cash collections will include which of the following?

1. $9,600 that was sold in September.

2. $60,000 that was sold in October.

3. November cash sales of $84,000

4. All of the above are expected to be part of November collections.

Reference no: EM13355563

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