Trumbull Company budgeted sales on account of $120,000 for July, $211,000 for August, and $198,000 for September. Collection experience indicates that 60% of the budgeted sales will be collected the month after sale, 36% the second month, and 4% will be uncollectible. The cash from accounts receivable that should be budgeted for September would be
a. $169,800
b.$194,760
c. $197,880
d. $198,600
Answer: A
CPA Exam
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