Required: Royal Cigar Company is preparing a budget for cash collections. Its sales for November...
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Accounting
Required: Royal Cigar Company is preparing a budget for cash collections. Its sales for November and December are estimated as $190,000 and $220,000, respectively. Past practice indicates that sales in any given month are collected as follows: month of sale, 70%; month following the month of sale, 25%; uncollectible accounts, 5%. The company allows a 2% discount for cash collections in the month of sale. What is the net cash estimated to be collected in December
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