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The sales budget for the first three months of the coming year is expected to be $20,000, $30,000 and $40,000 with 50% of each month's
The sales budget for the first three months of the coming year is expected to be $20,000, $30,000 and $40,000 with 50% of each month's sales being on credit. Collections of accounts receivable are scheduled at 50% during the month of sale, 50% is collected in the month following. Due to excellent collection practices, the company has no bad debts. The total budgeted cash receipts from sales for the second month of the coming year will be:
a.$30,000
b.$20,000
c.$12,500
d. $27,500
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