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A company's accounts receivable balance at the end of December is $51,630, of which 17.40% is...

A company's accounts receivable balance at the end of December is $51,630, of which 17.40% is uncollected from December sales. The company's credit sales policy is as follows: 53.30% collected in the month of sale, 33.00% collected in the month immediately after the sale, with the remaining balance collected in the second month after the sale. How much were the total sales in November?

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Answer:

Accounts Receivable at the end of December = $51,630

Uncollected from December Sales = 17.40% * Accounts Receivable at the end of December
Uncollected from December Sales = 17.40% * $51,630
Uncollected from December Sales = $8,983.62

Uncollected from November Sales = Accounts Receivable at the end of December - Uncollected from December Sales
Uncollected from November Sales = $51,630 - $8,983.62
Uncollected from November Sales = $42,646.38

53.30% of November sales in collected in November, 33.00% in December and remaining 13.70% in January.

Uncollected from November Sales = 13.70% * November Sales
$42,646.38 = 13.70% * November Sales
November Sales = $311,287.45

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