For Dubinsky Company, Experience Has Shown That Payment for the Credit

For Dubinsky Company, experience has shown that payment for the credit sales is received as follows: 40% in the month of sale, 40% in the first month after sale, 10% in the second month after sale, and 10% uncollectible. Dubinsky Company has budgeted the following credit sales during the last four months of the year: September, $15,000; October, $18,000; November $16,000; December, $34,000. How much cash can Dubinsky Company expect to collect in November as a result of credit sales?

A) $13,600
B) $8700
C) $15,100
D) $16,000

Correct Answer:

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