Mars-Venus Company has forecast credit sales for the fourth quarter of the year as:

 September (actual)............................ ....................................................... $50,000

Fourth Quarter

October.............................................         $70,000

November.........................................           65,000

December..........................................           90,000

 Collection Assumptions

1. Experience has shown that 40 per cent of sales are collected in the month of sale, 

2. 55 per cent of sales in the following month, and 

3. Remaining 5 per cent of sales are never collected.

What is cash collection in the month of December?

Select one:

a. 71,750

b. 55,500

c. 64,500 

d. 49,500

Answer rating: 100% (QA)

Answer a that is 71 750 The amount of cash collected in December is dependent upon the sales ... View the full answer