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The sales budget includes a computation of expected cash collection fromcredit sales, which will be used later for cash budgeting - All sales are on

The sales budget includes a computation of expected cash collection fromcredit sales, which will be used later for cash budgeting- All sales are on account.- The company collects 70% of these credit sales in the quarter of the sales,28% are collected in the quarter following sales, and the remaining 2% areuncollectible.The A/R balance on 31/12/2009 was 9500. all of this balance will becollectible.

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