Coyote Loco, Inc., a distributor of salsa, has the following historical collection pattern for its credit sales.

75 percent collected in the month of sale.

15 percent collected in the first month after sale.

5 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: June $123,500

July 151,000

August 176,000

September 202,000

October 227,000

November 252,000

December 214,500

Required:

1. Compute the estimated total cash collections during October from credit sales. 2. Compute the estimated total cash collections during the fourth quarter from sales made on account during the fourth quarter.

2.	Compute the estimated total cash collections during the fourth quarter from sales made on account during the fourth quarter.