Answer (B) is correct . During October, collections will be received from sales made in October, September, August, and July. Month Sales Percentage Collections October $90,000 ¡Á 70% = $63,000 September 80,000 ¡Á 15% = 12,000 August 70,000 ¡Á 10% = 7,000<
Answer (A) is incorrect because October collections from October sales only equals $63,000.
Answer (C) is incorrect because The estimated total cash collections during December is $86,700.
Answer (D) is incorrect because The amount of $21,400 will be the collections from sales made in previous months.
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Esplanade’s estimated total cash collections during October from accounts receivable are
