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Question - Fresplanade Co. had the following historical collection pattern for its credit sales:
75% collected in the month of sale
12% collected in the first month after month of sale
8% collected in the second month after month of sale
3% collected in the third month after month of sale
2% uncollectible
The sales on open account (credit sales) have been budgeted for the last six months of the year as shown below:
July $72,000
August $84,000
September $96,000
October $108,000
November $120,000
December $ 102,000
Required - What the estimated total cash collections by Fresplanade Co. during October from accounts receivable?
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