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Frank's Sporting Goods projects sales for the second quarter of 20X5 to be as follows: April $100,000 May $120,000 June $110,000
Ten percent of Frank's sales are for cash, 70% of accounts receivable are collected one month following the sale, and the rest are collected two months following the sale. January sales were $40,000, February sales were $60,000, and March sales were $80,000.
Problem A) Create a monthly schedule of cash receipts for the second quarter of 20X5.
Problem B) What is the balance in accounts receivable at the end of June?
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