Bob's Custom Books manufacturing has following sales:

Month Expected sales in units

July 40,000

August 60,000

September 30,000

October 20,000

November 20,000

The company sells the books for $25. Based on past history, the company expects that 20% of sales are cash.

Of the credit sales, half is collected the month of sale and the remainder is collected one month after sale.

Accounts receivable as at June 30th was $100,000; all of which is expected to be collected in July.