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Bowstrong Corporation Has Estimate the Following Collection Pattern for Its

Question 42

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Bowstrong Corporation has estimate the following collection pattern for its credit sales in the first year of operations:
80% collected in the month of sale
10% collected in the first month after the sale
5% collected in the second month after the sale
2% collected in the third month after the sale
3% uncollectible
Budgeted credit sales for the first six months of the year follow.  January $40,000 February 20,000 March 30,000 April 45,000 May 35,000 June 30,000\begin{array} { | l r | } \hline \text { January } & \$ 40,000 \\\text { February } & 20,000 \\\text { March } & 30,000 \\\text { April } & 45,000 \\\text { May } & 35,000 \\\hline \text { June } & 30,000 \\\hline\end{array} Required:
A. Calculate the estimated total cash collections during April.
B. Calculate the estimated total cash collections during the year's second quarter.

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