Question
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.
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 | $ | 63,000 | |
May | 74,000 | ||
June | 84,000 | ||
July | 94,000 | ||
August | 104,000 | ||
September | 114,000 | ||
October | 99,000 | ||
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.
2 A. Compute te menoted total cash collections during August Poor credit anica. . Compute the at meted total cash -collections during the August - October quarter thom shies made on account during his quater Complete this question by entering paar answers in the tata below.H.HH 2 Complete The question by anbring your answer In the babe blowStep by Step Solution
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