Sales Collections Rocky Peak Company plans on the following collection pattern on its sales:

Budgeted sales for the last six months of 2009 are shown below.

Required:
1. What are the estimated total cash collections during October 2009?
2. How much of the third quarter sales (i.e., July, August, and September) are expected to be collected during the third quarter?
3. What is the expected 2009 ending balance in accounts receivable, net of allowance for doubtful accounts?

Transcribed Image Text:

Collected in month of sale Collected in the first month after sale Collected in the second month after sale Collected in the third month after sale Uncollectible 70% 15 10 4 1