Question: Please, I need help with this problem 2. Cash Receipts Budgeti The Lovely Company is a consulting firm that sells organic skin care products to
2. Cash Receipts Budgeti The Lovely Company is a consulting firm that sells organic skin care products to the public Upon consultation with its clients. Average number of products purchased per customer during the No of Customers month 2 February 250 2 March 300 5 Apri 400 7 May 450 10 June 550 For a customer, the average price paid for a product is $148. Of these. 40 percent are paid in the month the product is sold, 30 percent in the month after the sale, and 25 percent in the second month after. The remaining 5 percent is uncollectible. a. What are Lovely's expected cash receipts for the second quarter of the year, April, May, and June? b. Assuming that the bad debts are written off in the last month of the collection pattern, what is the gross accounts receivable for the end of June? (For example, the bad debts for February are written off in April.) c. Assuming that the bad debts are written off in the last month of the collection pattern, what is the net accounts receivable for the end of June
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