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Question - Sequoia Furniture Company's sales over the past three months half of which are for cash were as follows
March
April
May
$404,00
$654,000
$524,000
a) Assume that Sequoia's collection period is 60 days. What would be its cash receipts in May? What would be its accounts receivable balance at the end of May?
b) Now assume that Sequoia's collection period is 45 days. What would be its cash receipts in May? What would be its accounts receivable balance at the end of May?
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