Unformatted text preview: 2-2 Practice Exercises
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Daybook Inc. collects 30% of its sales on account in the month of the sale and 70% in the month following the sale. If sales on account are budgeted to be $105,000 for September and $116,000 for October, what are the
budgeted cash receipts from sales on account for October?
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The primary source of estimated cash receipts is from cash sales and collections on account.
To estimate cash receipts from cash sales and collections on account, a schedule of collections from sales is prepared.
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- Spring '14