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Remote Center's Sales Are All Made on Account Calculate the Cash Collections That Would Be Included in the Collection

Question 48

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Remote Center's sales are all made on account. The firm's collection experience has been that 20 percent of a month's sales are collected in the month of sale, 60 percent are collected in the month following the sale, and 18 percent are collected in the second month following the sale. The sales forecast for the months of August through November is:  August $480,000 September $560,000 October $600,000 November $700,000\begin{array} { l l } \text { August } & \$ 480,000 \\\text { September } & \$ 560,000 \\\text { October } & \$ 600,000 \\\text { November } & \$ 700,000\end{array} Calculate the cash collections that would be included in the cash budgets for October and November.

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