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Coyote Loco, Inc., a distributor of salsa, has the following historical collection pattern for its credit sales. 70 percent collected in the month of sale.
Coyote Loco, Inc., a distributor of salsa, 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:
June$128,500
July156,000
August181,000
September212,000
October237,000
November262,000
December224,500
Required:
- Compute the estimated total cash collections during October from credit sales.
- Compute the estimated total cash collections during the fourth quarter from sales made on account during the fourth quarter.
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