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elena-14-01-66
16 days ago
12

Harrington makes all sales on account, subject to the following collection pattern: 30% are collected in the month of sale; 60%

are collected in the first month after sale; and 10% are collected in the second month after sale. If sales for June, July, and August were $80,000, $130,000, and $120,000, respectively, what were the firm's budgeted collections for August and the company's budgeted receivables balance on August 31
Business
1 answer:
Free_Kalibri [3.1K]16 days ago
5 0

Response:

The cash collection totals $122,000

and the amount receivable as of August 31 stands at $97,000

Clarification:

For August, the anticipated cash collection is $122,000, while the receivables amount on August 31 is $97,000.

A cash collection schedule is included in the attached MS Excel file with this response.

Download xlsx
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