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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) 40,000
September sales (actual) $50,000
October sales (estimated) $20,000
November sales (estimated) 70,000
December sales (estimated) $60,000
Approximately 60% of all sales are collected in the month of the sale, 30% is collected in the following month, and 10% is collected in the month thereafter.
a. Budgeted collections from customers in October total:
b. Budgeted collections from customers in December total:
c. Budgeted collections from customers in November total:
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