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Question - HAM Company has budgeted sales for the next six months as follows:
Budgeted Sales
March
$224,000
April
$209,000
May
$276,000
June
$231,000
July
$198,000
August
$243,000
20% of the company's sales are cash sales and 80% of the company's sales are made on account. On average, 36% of the sales on account are collected in the month of sale, 27% is collected in the month following sale, 22% is collected in the second month following sale, and the remaining 15% is collected three months after the month of sale.
Part A) Find the budgeted cash collections for the month of June?
Part B) Find the budgeted accounts receivable balance at August 31?
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