Answer Happy

Question 4 Do-Re-Mi Ltd is a retailer of musical instruments and has the following historical collection pattern for its credit sales: ▪ 70 per cent collected in the month of sale. 15 per cent collected in the first month after sale. 10 per cent collected in the second month after sale. 4 per cent collected in the third month after sale. 1 per cent uncollectable. The credit sales have been budgeted for the last seven months of the year, as shown below: June July August September October November December $55 000 60 000 70 000 80 000 90 000 100 000 85 000 Required 1. Calculate the estimated total cash receipts during October from credit sales 2. Calculate the estimated total cash receipts during the December quarter from credit sales during the quarter.