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USA Apparel has forecast credit sales for the fourth quarter of the year as:
September (actual) $50,000
October (estimate) 40,000
November (estimate) 35,000
December (estimate) 60,000
Experience has shown that 20 percent of sales receipts are collected in the month of sale, 70 percent in the following month, and 10 percent are never collected.
Make a schedule of cash receipts for USA Apparel covering the fourth quarter (October through December). For each of those three months, calculate the amount of cash the company expects to COLLECT from customers.
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