Answer (C) is correct . For October sales, collections will be 70% in October, 15% in November, and 10% in December, a total of 95%. For November sales, collections will be 70% in November and 15% in December, a total of 85%. Collections on December sales will be 70%. Month Sales Percentage Collections October $90,000 ¡Á 95% = $85,500 November 100,000 ¡Á 85% = 85,000Answer (A) is incorrect because The collections of October and November sales equals $170,500.
Answer (B) is incorrect because The total sales for the quarter equals $275,000.
Answer (D) is incorrect because The amount of $251,400 includes sales made prior to the 4th quarter.
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Esplanade’s estimated total cash collections during the fourth calendar quarter from sales made on open account during the fourth calendar quarter are