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Please show calculations and work Company has budgeted sales revenues as follows: Budgeted Sales Revenues January $55,000 February 75,000 March 90,000 April 70,000 May 50,000
Please show calculations and work
Company has budgeted sales revenues as follows:
Budgeted Sales Revenues
January $55,000
February 75,000
March 90,000
April 70,000
May 50,000
Past experience has indicated that 80% of sales each month are on credit and that collection of credit sales occurs as follows: 60% in the month of sale, 30% in the month following the sale, and 10% in the second month following the sale.
Instructions: Prepare a schedule that shows expected cash receipts from sales for the months of April and May.
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