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Seven Sages, LLC made $400,000 is sales during the month of July, of which 30% constituted cash sales. The remaining amount were sales made
Seven Sages, LLC made $400,000 is sales during the month of July, of which 30% constituted cash sales. The remaining amount were sales made on credit. In August, sales on account totaled $300,000, which represented 80% of total sales during the month. The company planned for $300,000 in sales for September and expects sales in October to be 20% higher than September's sales. Budgeted sales are expected to be categorized as follows: 30% cash sales, 70% credit sales. Sales on account carry credit terms of net 30. Based on prior experience, management believes 80% of credit sales will be collected in the month following the month of sale. 10% of credit sales will be collected in the second month following the month of sale and 7% will be collected in the third month following the sale. The remaining 3% of credit sales are not anticipated to be collected. Given the information listed above, calculate ethe total expected cash receipts in October.
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