Answer:
September= $140,000
Explanation:
Giving the following information:
Budgeted sales;
September= $250,000
The company expects to sell 20 percent of its merchandise for cash. Of sales on account, 70 percent are expected to be collected in the month of the sale, 25 percent in the month following the sale, and the remainder in the following month.
Sales on account September:
Sales on account= (250,000*0.8)= $200,000
Cash collection from sales on account:
September= 200,000*0.7= $140,000
Because it is the beginning of operations, there aren't cash collections from previous months