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Problem:

Roswell Company has budgeted sales revenue as follows for the next 4 months as follows. February $150,000 March $120,000 April $105,000 May $165,000 Past experience indicates that 80% of sales each month are on credit and that collection of credit sales occurs as follows: 60% in the month of sale, 35% in the month following the sale, and 3% in the second month following the sale. The other 2% is uncollectible.

Required:

Question: Prepare a schedule which shows expected cash receipts from sales for the month of May.

Note: Please show how to work it out.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91162152

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