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How do you calculate accounts recievable at the end of June 30th and explain how you got the answer ? April May June Total $300,000
How do you calculate accounts recievable at the end of June 30th and explain how you got the answer ?
April | May | June | Total | |
$300,000 | $500,000 | $200,000 | 1,000,000 | |
From past experience, the company has learned that 20% of a months sales are collected in the month of sale, another 70% are collected in the month following sale, and the remaining 10% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $230,000, and March sales totaled $260,000.
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