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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.
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 | $127,500 |
July | 155,000 |
August | 180,000 |
September | 210,000 |
October | 235,000 |
November | 260,000 |
December | 222,500 |
Compute the estimated total cash collections during the fourth quarter from sales made on account during the fourth quarter |
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