Determining cash receipts from accounts receivable Hancock Corporation is about to start a business as an agricultural

Question:

Determining cash receipts from accounts receivable Hancock Corporation is about to start a business as an agricultural products distributor. Because its customers will all be retailers, Hancock will sell its products solely on account. The company expects to collect 50 percent of accounts receivable in the month of sale and the remaining 50 percent in the following month. Hancock expects sales revenues of $300,000 in July, the first month of operation, and $280,000 in August.

Required

a. Determine the amount of cash Hancock expects to collect in July.

b. Determine the amount of cash Hancock expects to collect in August.

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