ABC Corporation started its operations on Sept. 1 of the present year. Forecasted sales for first three months of business are $240,000, $300,000, and $420,000 respectively for Sept, Oct, and Nov. Company expects to sell 20% of those sales for cash and 80% on account. Of the sales on account, 70% are expected to collected in the month of the sale, 25% in the month following the sale, and 5% in the next month.
In November total cash collections will comprise which of the following?
• $9,600 which was sold in September.
• $60,000 which was sold in October.
• November cash sales of $84,000
• All of the above are likely to be part of November collections.