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Help understand how the find accounts receivable please. :) Preparing a financial budget-schedule of cash receipts, sensitivity analysis Armand Company projects the following sales for
Help understand how the find accounts receivable please. :)
Preparing a financial budget-schedule of cash receipts, sensitivity analysis Armand Company projects the following sales for the first three months of the year: $10,600 in January; $12,300 in February; and $12,900 in March. The company expects 60% of the sales to be cash and the remainder on account. Sales on account arc collected 50% in the month of the sale and 50% in the following month. The Accounts Receivable account has a zero balance on January 1. Round to the nearest dollar. Requirements Prepare a schedule of cash receipts for Armand for January, February, and March. What is the balance in Accounts Receivable on March 31? Prepare a revised schedule of cash receipts if receipts from sales on account are 60% in the month of the sale, 30% in the month following the sale, and 10% in the second month following the sale. What is the balance in Accounts Receivable on March 31Step by Step Solution
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