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Question - Kelly Co sells calculators. All sales are made on credit terms. 60% of customers pay in the same month that the sale is made, 30% of customers pay one month following the month of sale and the remaining 10% of customers pay two months following the month of sale. The expected sales for July are $500,000, August $300,000 and September $400,000. Compute the expected cash to be collected from customers in the month of September?
a. $240,000
b. $1,200,000
c. $400,000
d. $380,000
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