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Question Content Area Nuthatch Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business September,

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Nuthatch Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business September, October, and November are $246,000, $304,000, and $410,000, respectively. The company expects to sell 30% of its merchandise for cash. Of sales on account, 80% are expected to be collected in the month of the sale and 20% in the month following the sale.
The cash collections expected in September from accounts receivable are estimated to be
a. $172,200
b. $137,760
c. $295,200
d. $246,000

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