Dos Tacos, Inc., a manufacturer of salsa, has the following historical collection pattern for its credit

sales.

55 percent collected in the month of sale.

20 percent collected in the first month after sale.

15 percent collected in the second month after sale.

8 percent collected in the third month after sale.

2 percent uncollectible.

The sales on account have been budgeted for the last seven months as follows:

June .................................................................................... $ 53,000

July ....................................................................................... 64,000

August ................................................................................... 72,000

September ............................................................................. 80,000

October ................................................................................. 89,000

November .............................................................................105,000

December .............................................................................. 82,000

Required:

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 fourth quarter.

3. Make sure to show the calculations by month during the 4th quarter (Oct-Dec)

Budgeted Sales on Account:			Collection Schedule:
June	$ 53,000		In month of sale		55%
July	$ 63,000		In 1st month after sale		20%
August	$ 72,000		In 2nd month after sale		15%
September	$ 80,000		In 3rd month after sale		8%
October	$ 89,000		Uncollectible		2%
November	$ 100,000				100%
December	$ 82,000