B Compute The Estimated Total Cash Collections During The August October Quarter From Sales Made On Account During 1 (60.36 KiB) Viewed 56 times
► B. Compute the estimated total cash collections during the August - October quarter from sales made on account during this quarter. Complete this question by entering your answers in the tabs below. Required A Required B Compute the estimated total cash collections during the August - October quarter from sales made on account during this quarter. Amount Collected August September October Month of Sale August September October Credit Sales $ 104,000 114,000 99,000 Total $ $ 0 $ 0 Total collections in the Aug-Oct quarter from credit sales in this quarter < Required A Required B
Paradise, Inc., a distributor of suntan lotion, has the following historical collection pattern for its credit sales. 70 percent collected in the month of sale. 15 percent collected in the first month after sale. 10 percent collected in the second month after sale. 4 percent collected in the third month after sale. 1 percent uncollectible. The sales on account have been budgeted for the last seven months as follows: April May June July August September October $ 63,000 74,000 84,000 94,000 104,000 114,000 99,000 Required: A. Compute the estimated total cash collections during August from credit sales. B. Compute the estimated total cash collections during the August - October quarter from sales made on account during this quarter.
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