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A distributor has the following historical collection pattern for its credit sales. 70 percent collected in the month of sale. 15 percent collected in the

A distributor 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

$ 49,000

May

60,000

June

70,000

July

80,000

August

90,000

September

100,000

October

85,000

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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