The following forecasted sales pertain to Spyware Corporation: Month September October November December Sales $40,000 50,000...

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The following forecasted sales pertain to Spyware Corporation: Month September October November December Sales $40,000 50,000 30,000 20,000 Collection pattern: 65% in month of sale 35% in month following sale Accounts receivable as of August 31 Finished goods inventory as of August 31 $7,000 1,500 units Spyware Corporation has a selling price of $2.50 per unit and expects to maintain ending inventories equal to 25% of the next month's sales. What amount is expected to be collected in September? The following forecasted sales pertain to Spyware Corporation: Month September October November December Sales $40,000 50,000 30,000 20,000 Collection pattern: 65% in month of sale 35% in month following sale Accounts receivable as of August 31 Finished goods inventory as of August 31 $7,000 1,500 units Spyware Corporation has a selling price of $2.50 per unit and expects to maintain ending inventories equal to 25% of the next month's sales. What amount is expected to be collected in September?

Answer rating: 100% (QA)

To calculate the expected collections for September we need to consider the sales for Sep... View the full answer