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Question - Eastern Auto Parts Inc. has forecasted the following sales for the 2nd Quarter of 2022.
April $250,000
May $300,000
June $400,000
Past results indicate that 20% of sales are cash and 80% on account. Credit sales are collected as follows: 25% in the month of sale, 60% in the month following the sale, and the balance during the month after.
February and March credit sales were $200,000 and $300,000 respectively.
What would the Cash Collection schedule for the 2nd quarter of 2022 look like in full detail?
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