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Question - Parker Company has forecast its sales as follows:
November $190,000 (actual)
December $240,000 (actual)
January $280,000
February $300,000
March $350,000
April $320,000
Parker has experienced collections of 55% during the month of sale, 38% the month after the sale, and 7% the second month after the sale.
Required -
a. Compute a schedule of cash receipts for the 4-month period January - April.
b. What will the Accounts Receivable balance be on April 30?
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