Paradise, Inc., a distributor of suntan lotion, has the following historical collection pattern for its credit sales.

70 percent collected in the month of sale.

15 percent collected in the first month after sale.

10 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:

April

$

68,000

May

79,000

June

89,000

July

99,000

August

109,000

September

119,000

October

104,000

Required:

A.Compute the estimated total cash collections during August from credit sales.

B.Compute the estimated total cash collections during the August - October quarter from sales made on account during this quarter.