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    Cash Receipts

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    I would like to see the steps/process to solve the following:

    A company's sales all on credit, for the past three months were:
    August September October
    $60,000 $90,000 $45,000

    a. Estimate the company's cash receipts in October if the company's collection period is 30 days.

    b. Estimate the company's cash receipts in October if the company's collection period is 45 days

    © BrainMass Inc. brainmass.com June 3, 2020, 7:02 pm ad1c9bdddf
    https://brainmass.com/business/accounting/calculating-cash-receipts-84560

    Solution Preview

    a. Estimate the company's cash receipts in October if the company's collection period is 30 days.

    If the collection period is 30 days, it means that whatever is sold on Day 1 will be collected on Day 31. Whatever is sold in October will not be collected in October but will be ...

    Solution Summary

    The solution explains how to calculate the cash receipts given the collection period.

    $2.19

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