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It is November 1 of Year 1. Sales for Earl Company for November and December (of Year 1) and January (of Year 2) are forecasted
It is November 1 of Year 1. Sales for Earl Company for November and December (of Year 1) and January (of Year 2) are forecasted to be as follows:
November, 400,000
December, 500,000
January, 200,000
100% of sales are credit sales. Of these credit sales 10% are collected during the month of sale, 20% in the following month, and 65% in the second following month, 5% are never collected. Total Sales for September and October of Year 1 were 100,000 and 150,000 respectively. What is the foecasted amount of total cash collections in January (of Year 2)?
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