Del Spencer is the owner and founder of Del Spencers Mens Clothing Store. Del Spencers has its own house charge accounts and has found from past experience that 10 percent of its sales are for cash. The remaining 90 percent are on credit. An aging schedule for accounts receivable reveals the following pattern: 15 percent of credit sales are paid in the month of the sale.

65 percent of credit sales are paid in the first month following the sale.

14 percent of credit sales are paid in the second month following the sale.

6 percent of credit sales are never collected.

Credit sales that have not been paid until the second month following the sale are considered overdue and are subject to a 3 percent late charge.Del Spencers has developed the following sales forecast:

Month	Amount
May	$60,000
June	55,000
July	45,000
August	56,000
Sept	83,000
May	60,000
June	55,000