Brandon Wholesalers has found that 84% of its sales in any given month are credit...
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Brandon Wholesalers has found that 84% of its sales in any given month are credit sales, while the remainder are cash sales. Of the credit sales, Brandon Wholesalers has experienced the following collection pattern: - 24% paid in the month of the sale. - 48% paid in the month after the sale - 19\% paid two months after the sale - 9% of the sales are never collected November sales for last year were $76,000, while December sales were $120,500. Projected sales for the next three months are as follows: Requirement Prepare a cash collections budget for the first quarter, with a column for each month and for the quarter
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Brandon Wholesalers has found that 84% of its sales in any given month are credit sales, while the remainder are cash sales. Of the credit sales, Brandon Wholesalers has experienced the following collection pattern: - 24% paid in the month of the sale. - 48% paid in the month after the sale - 19\% paid two months after the sale - 9% of the sales are never collected November sales for last year were $76,000, while December sales were $120,500. Projected sales for the next three months are as follows: Requirement Prepare a cash collections budget for the first quarter, with a column for each month and for the quarter 