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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

  1. Calculate the estimated total cash receipts during October from credit sales
  2. Calculate the estimated total cash receipts during the December quarter from credit sales during the quarter.

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