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Budgeted sales for the first quarter of the year for the Delta Company are as follows:
]Budgeted SalesJanuary ........$400,000February .......$200,000March.........$600,000
1.The Company normally collects 60% in the month of sale and 30% in the month following the sale. Ten percent of all sales are uncollectible and are written off in the following month.
2.The balance in accounts receivable at January 1 was $100,000, which represents 40% of December sales.
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