East Company budgeted the following credit sales during the current year: August $100,000 September, $110,000;...
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East Company budgeted the following credit sales during the current year: August $100,000 September, $110,000; October, $120,000; November, $85,000; December, $100,000. Experience has shown that cash from credit sales is recelved as follows: 25% in the month of sale. (All collections in the month of sale are subject to 2 percent cash discount) 60% in the first month after sale, 12% in the second month after sale, and 3% is uncollectible. Required: How much total cash can East Company expect to collect in October
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