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On 1 September 2020. The following information has been provided by the firm. In September, cash sales were $15,000 and credit sales $35,000. Total expected sales in the following three months are: $70,000 in October; $78,000 in November; and $82,000 in December. The company expects 30% of the sales of each month to be cash sales and the remainder credit sales. Credit sales are expected to be collected 50% in the month of the sale, 30% in the next month, and 20% in the following month.
All purchases of inventory are on credit. Purchases of inventory in September were $40,000. The company estimates purchases in the following three months to be: $32,000 in October, $38,000 in November and $42,000 in December. Purchases are paid 50% in the month of purchase, and 50% in the following month.
Problem 1. what would a schedule of estimated receipts from debtors (accounts receivable) for the months of October, November and December 2020 look like
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