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Assume the following budgeted information for a merchandising company: Budgeted sales (all on credit)...

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Accounting

Assume the following budgeted information for a merchandising company:
Budgeted sales (all on credit) for November, December, and January are $251,000,$221,000, and $212,000, respectively.
Cash collections of credit sales are expected to be 75% in the month of sale and 25% in the month following the sale.
The cost of goods sold is always 70% of sales.
Each month's ending inventory equals 20% of next month's cost of goods sold.
30% of each month's merchandise purchases are paid in the current month and the remainder is paid in the following month.
Monthly selling and administrative expenses that are paid in cash in the month incurred total $26,500.
Monthly depreciation expense is $26,000.
The expected cash collections from customers in December are:
Multiple Choice
$218,750.
$248,750.
$233,060.
$228,500.
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