Page Company makes 30% of its sales for cash and 70% on account. 60% of...
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Accounting
Page Company makes 30% of its sales for cash and 70% on account. 60% of the credit sales are collected in the month of sale, 25% in the month following sale, and 10% in the second month following sale. The remainder is uncollectible. The following information has been gathered for the current year:
Month
1
2
3
4
Total sales
$80,000
$90,000
$70,000
$50,000
Total cash receipts in Month 4 will be:
$52,000.
$39,550.
$54,550.
$69,500.
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