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Cash sales and credit sales represent 25% and 75% respectively of total sales. Of the credit sales, 60% is collected in the first month after
Cash sales and credit sales represent 25% and 75% respectively of total sales. Of the credit sales, 60% is collected in the first month after the month of sales and 40% in the second month after the month of sale. For the December 31, 2013, accounts receivable balance, 125,000 is collected in January and the remaining 400,000 is collected in February.
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