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Accounting

Capid Corporation is a wholesaler of industrial goods. Data regarding the store's operations follow:

• Sales are budgeted at $355,000 for November, $325,000 for December, and $315,000 for January.

Collections are expected to be 62% in the month of sale, 34% in the month following the sale, and 4% uncollectible.

The cost of goods sold is 74% of sales.

The company purchases 42% of its merchandise in the month prior to the month of sale and 58% in the month of sale. Payment for merchandise is made in the month following the purchase.
• The November beginning balance in the accounts receivable account is $77,800.
• The November beginning balance in the accounts payable account is $270,400.

Prepare a Schedule of Expected Cash Collections for November and December.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9976317

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