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Cash Collection Receivables

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A firm has forecasted sales of $4,000 in January, $6,000 in February and $5,500 in March. All sales are on credit. 40% is collected the month of sale and the remainder the following month. How much is collected from accounts receivable in February?

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The solutione explains how to calculate the amount of cash collection from receivables

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In February the collections will be the remaining (60%) sales of January and 40% of February ...

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