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The sales forecast from January to May 20X8 for Jeremy Ltd is shown below:
Jan Feb Mar Apr May
Sales $180 000 $180000 $200 000 $200 000 $230 000
50% of sales are on a cash basis while the remaining sales are on credit. Out of this remainder, 60% is collected one month after sale and the remaining 40% collected two months after sale. Customers who pay on a cash basis get a discount of 5%.
Problem 1: Show the total cash receipts forecast for the months of March, April and May 20X8.
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