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Campbell Corporation's sales are 40% cash and 60% credit. The Cambell Corporation's collection history indicates that credit sales are collected as follows: Month of sale
Campbell Corporation's sales are 40% cash and 60% credit. The Cambell Corporation's collection history indicates that credit sales are collected as follows:
Month of sale | 20% |
Month after sale | 50% |
Two months after sale | 25% |
Uncollectible | 5% |
Required: Prepare a cash collections budget for each month in the quarter (January, February, and March) and for the quarter in total.
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