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Question
Preston Fencing Company's sales, half of which are for cash and the other half sold on credit, over the past three months were:
a. Estimate Preston's cash receipts in October if the company's collection period is 30 days.
b. Estimate Preston's cash receipts in October if the company's collection period is 45 days.
c. What would be the October balance of accounts receivable for Preston Fencing if the company's collection period is 30 days? 45 days?
Answer
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