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. 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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