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The Walton Corporation forecasted sales from July to December in 2018 are as follows. 20% of sales are made on cash and remaining sales are made on credit terms 2/10, net 30.
June July August Sep. Oct. Nov. Dec.
$20,000 $30,000 $32,000 $28,000 $35,000 $40,000 $45,000
Question 1: Experience has shown that collection has been made within the month of sale, 30% and that are the discount sales; the collection following the month is 60% and the remaining collection is made in the 2nd month following the month of sale. Calculate total collections from August to December, 2018.
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