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Birch Construction has the following historical pattern on its credit sales: 70% collected in month of sale 15% collected in the first month after sale
Birch Construction has the following historical pattern on its credit sales:
70% collected in month of sale
15% collected in the first month after sale
10% collected in the second month after sale
4% collected in the third month after sale
1% uncollectible
The sales on open account have been budgeted for the last six months of 2022 as shown below:
July - $70,000
August - $90,000
September - $100,000
October - $120,000
November- $100,000
December - $90,000
a. The estimated total cash collections during October 2022 from accounts receivable would be?
b. The estimated total cash collections during the fourth calendar quarter from sales made on open account during the fourth calendar quarter would be?
PLEASE SHOW WORK AND ON EXCEL
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