Past credit sales for ABC Ltd are: July: $12,000; August: $18,000. ABC Ltd estimates sales for the following months would be September: $18,000; October: $20,000.

Credit sales are collected: 50% in the month of sale; 30% in the month following the sale, and 20% in the second month.

Purchases are 50% of credit sales, and purchases are paid 60% in the month of purchase and 40% in the month after purchase.

1. How much would be the collection in October?

1. $19,000.
2. $18,400.
3. $16,800.
4. $20,400.
5. None of the above

2. How much would be the payment for purchases in October?

1. $19,200.
2. $9,400.
3. $9,500.
4. $9,600.
5. None of the above