1 Question One Cash Budget The LaPann Company has obtained the following sales forecast data: JulyAugustSeptemberOctoberCash Sales $ 80,000 $ 70,000$ 50,000 $ 60,000 Credit Sales $240,000 $220,000$180,000 $200,000 The regular pattern of collection of credit sales is 20% in the month of sale, 70% in the month following the month of sale, and the remainder in the second month following the month of sale. There are no bad debts. Required: (Please explain how you derive the answers.) 1.What is the budgeted accounts receivable balance on September 30? 2. What are the budgeted cash receipts for October?
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