Exercise B Determining cash receipts from accounts receivable
Lingo Corporation is about to start a business as an agricultural products distributor. Because its customers will all be retailers, Lingo will sell its products solely on account. The company expects to collect percent of accounts receivable in the month of sale and the remaining percent in the following month. Lingo expects sales revenues of $ in July, the first month of operation, and $ in August.
Required
a Determine the amount of cash Lingo expects to collect in July.
b Determine the amount of cash Lingo expects to collect in August.
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