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Question - The following are forecasts of sales and purchases for Savannah Company:
Sales
Purchases
April
$80,000
$30,000
May
90,000
40,000
June
85,000
30,000
All sales are on credit. Records show that 70 percent of the customers pay the month of the sale, 20 percent pay the month after the sale, and the remaining 10 percent pay the second month after the sale. Purchases are all paid the following month at a 2 percent discount. Cash disbursements for operating expenses in June were $5,000.
Required - Prepare a schedule of cash receipts and disbursements for June.
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