# EXERCISE 23.8 Use LO23-4, LO23-5 in the text for help. Sales on account for the first tw

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EXERCISE 23.8  Use LO23-4, LO23-5 in the text for help.

Sales on account for the first two months of the current year are budgeted as follows:

Jan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \$800,000

Feb. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..  880,000

All sales are made on terms of 2/10, n/30 (2% discount if paid in 10 days, full amount by 30 days); collections on accounts receivable are typically made as follows:

Collections within the month of sale:

Within discount period  70%

After discount period  10

Collections within the month following sale:

Within discount period  12

After discount period    6

Returns, allowances, and uncollectibles    2

Total    100%

Compute the estimated cash collections on accounts receivable for the month of

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