Spacely Sprockets' sales budget shows the following expected total sales:MonthSalesJanuary$30,000February$40,000March$35,000April$30,000The company expects 80% of its sales to be on account (credit sales). Credit sales are collected as follows: 30% in the month of sale, 68% in the month following the sale with the remainder being uncollectible and written off in the month following the sale.Required:a) Calculate budgeted accounts receivable at the end of each month from February through April.b) Calculate budgeted cash inflows from collection of receivables for each month from February through April.
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Answers will vary
1) Working Calculations:
Budgeted accounts receivable at the end of each month from February through April.
2) Budgeted cash inflows from collection of receivables for each month from February through April.
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