Cash Collections

Five Bros., Inc., is an automobile maintenance and repair company with outlets throughout the western United States. The company controller is starting to assemble thecash budgetfor the fourth quarter. Projected sales for the quarter are as follows:

On AccountCashOctober$400,000$190,000November690,000220,000December750,000245,000

Cash collection records pertaining to sales on account indicate the following collection pattern:

Month of sale40%First month following sale30%Second month following sale28%Uncollectible2%

Sales on account during August were $346,000. During September, sales on account were $390,000.

Compute the amount of cash to be collected from customers during each month of the fourth quarter.

Total Cash to be Collected

from CustomersOctober$November$December$

Exercise 20-8 Cash Collections Five Bros., Inc., is an automobile maintenance and repair company with outlets throughout the western United States. The company controller is starting to assemble the _I:_a_s!|_|3|!dggt_ for the fourth quarter. Projected sales for the quarter are as follows: On Account cash October $400,000 $190,000 November 690,000 220,000 December 750,000 245,000 Cash collection records pertaining to sales on account indicate the following collection pattern: Month of sale 40% First month following sale 30% Second month following sale 28% Uncollectible 2% Sales on account during August were $346,000. During September, sales on account were $390,000. Compute the amount of cash to be collected from customers during each month of the fourth quarter. Total Calll to be Collected from Cult-amen October $ I: 0 November $ I: 0 December $ I: 0 Hide Feedback ' Check My Work Feedback Estimated Ending Cash Balance = Total Estimated Receipts Total Estimated Cash Payments + Estimated Beginning Cash Balance Check My Work (N o more tries availabl