Royal Cigar Company is preparing a budget for cash collections. Its sales for November and...
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Royal Cigar Company is preparing a budget for cash collections. Its sales for November and December are estimated as $125,000 and $142,000, respectively. Past practice indicates that sales in any given month are collected as follows: month of sale, 80%; month following the month of sale, 15%; uncollectible accounts, 5%. The company allows a 2% discount for cash collections in the month of sale.
What is the net cash estimated to be collected in December?
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