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Magicians Corporation has the following budgeted sales for the next six months: Cash Credit Sales Sales June $ 100,000 $ 200,000 July $ 125,000 $

Magicians Corporation has the following budgeted sales for the next six months:

Cash

Credit

Sales

Sales

June

$ 100,000

$ 200,000

July

$ 125,000

$ 175,000

August

$ 95,000

$ 160,000

September

$ 115,000

$ 170,000

October

$ 110,000

$ 155,000

November

$ 90,000

$ 140,000

The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled:

Collections on credit sales:

In month of sale

10%

In month following sale

85%

In second month following sale

5%

The accounts receivable balance on June 1 is $150,000. Of this amount, $30,000 represents uncollected May sales and $5,000 represents uncollected April sales. The total cash collected during June would be: _______________

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