Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 $125,500
July 153,000
August 178,000
September 206,000
October 231,000
November 256,000
December 218,500

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 4th quarter

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Brinks Modern Internal Auditing A Common Body Of Knowledge

Authors: Robert R. Moeller

7th Edition

0470293039, 978-0470293034

More Books

Students also viewed these Accounting questions

Question

What are models and why are they important?

Answered: 1 week ago

Question

to encourage a drive for change by developing new ideas;

Answered: 1 week ago

Question

4 What are the alternatives to the competences approach?

Answered: 1 week ago