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Ross Corporation makes all sales on account. The June 30th balance sheet balance in its accounts receivable is $500,000, of which $280,000 pertain to sales that were made during June. Budgeted sales for July are $1,350,000. Ross collects 65% of sales in the month of sale; 15% in the following month; and the final 20% in the second month after the sale.

1. What are Ross's budgeted collections for July?

Multiple Choice

• $1,139,500

• $963,500

• $1,217,500

• $1,157,500

2. What is the budgeted balance of Ross's accounts receivable as of July 31?

Multiple Choice

• $1,139,500

• $963,500

• $632,500

• $1,157,500