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Do-Re-Mi Ltd is a retailer of musical instruments and has the following historical collection pattern for its credit sales: 70 per cent collected in the
Do-Re-Mi Ltd is a retailer of musical instruments and has the following historical collection pattern for its credit sales:
- 70 per cent collected in the month of sale.
- 15 per cent collected in the first month after sale.
- 10 per cent collected in the second month after sale.
- 4 per cent collected in the third month after sale.
- 1 per cent uncollectable.
The credit sales have been budgeted for the last seven months of the year, as shown below:
June | $55 000 |
July | 60 000 |
August | 70 000 |
September | 80 000 |
October | 90 000 |
November | 100 000 |
December | 85 000 |
Required
- Calculate the estimated total cash receipts during October from credit sales
- Calculate the estimated total cash receipts during the December quarter from credit sales during the quarter.
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