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The Model Company is to begin operations in April. It has budgeted April sales of $54,000, May sales of $58,000, June sales of $64,000, July
The Model Company is to begin operations in April. It has budgeted April sales of $54,000, May sales of $58,000, June sales of $64,000, July sales of $66,000, and August sales of $62,000. Note that 10% of each month's sales is expected to represent cash sales; 75% of the balance is expected to be collected in the month following the sale, 17% the second month, 6% the third month, and the balance is expected to be uncollectible. What is the amount of cash to be collected in the month of July?
a. $68,000.
b. $60,870.
c. $61,590.
d. $55,110.
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