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Posted: September 16th, 2023
Fredder Company usually sells about 20% of its merchandise during
Fredder Company usually sells about 20% of its merchandise during a month for cash with the remaining sales on account. The company's accounts receivable payment history is as follows: 30% in the month of sale, 50% in the month following, and 15% in the second month following sale. Total budgeted sales for the second quarter are as follows:April$100,000May120,000June80,000Assume all questions relate to the month of June.What are the expected cash sales?80,000*20%=$16,000What are the expected receipts from accounts receivable for sales made in April
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