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Consider the following information for a given company: Month Cash Sales Credit Sales Jan $80,000 $350,000 * Feb $60,000 $200,000 Mar $50,000 $145,000 Apr $45,000
Consider the following information for a given company:
Month | Cash Sales | Credit Sales |
Jan | $80,000 | $350,000* |
Feb | $60,000 | $200,000 |
Mar | $50,000 | $145,000 |
Apr | $45,000 | $130,000 |
May | $55,000 | $170,000 |
Jun | $50,000 | $150,000 |
The firms collection pattern is as follows:
60% in the month of sale
30% one month following sale
10% two months following sale
The accounts receivable balance on 1 Jan is $70,000. Of this amount, $60,000 represents uncollected Dec sales and $10,000 represents uncollected Nov sales.
Required: Determine the total cash collected during Jan
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