Capstone Inc. collects 85% of its sales on account in the month of the sale and 15% in the month following the sale. If sales on account

Capstone Inc. collects 85% of its sales on account in the month of the sale and 15% in the month following the sale. If sales on account are budgeted to be $265,000 for September and $225,000 for October, what are the budgeted cash receipts from sales on account for October? $fill in the blank 1

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  1. $231,000

    Explanation:

    The budgeted cash receipts in October is:

    = (85% * October sales) + (15% * September sales)

    = (85% * 225,000) + (15% * 265,000)

    = 191,250 + 39,750

    = $231,000

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