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You started a new business in sunglasses on January 1. You expect the pattern of collection of cash from customers to be 40% in the
You started a new business in sunglasses on January 1. You expect the pattern of collection of cash from customers to be 40% in the month of the sale, 40% in the month following the sale, and 16% in the second month following the sale, with 4% uncollectable. You had credit sales of $400,000 in January, $500,000 in February and $450,000 in March. How much cash did you receive from customers on account during February? Multiple Choice O $400,000 $432.000 O $160,000 $360,000
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