Question: [l] (10 points) Master Company needs to know its anticipated cash inows for the third quarter (July? September). Cash sales are 10 percent of total
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[l] (10 points) Master Company needs to know its anticipated cash inows for the third quarter (July? September). Cash sales are 10 percent of total sales each month. Historically, sales on account have been collected as follows: 65 percent in the month of sale, 30 percent in the month after the sale, and the remaining 5 percent two months after the sale. Sales for the quarter are projected as follows: July, $124,000; August, $112,000; and September, $94,000. Accounts receivable on June 30 were $56,000. Required: A. Calculate the expected total cash receipts for the month of September B. Calculate the accounts receivable balance on September 30
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