Q2: A: The sales on account have been budgeted for last seven month as follow: (5 MARKS)

Budgeted unit sales	June	July	August	September	October	November	December
	49,000	60,000	70,000	80,000	90,000	100,000	85,000

Mynor corporation manufacturer has following historical collection pattern for its credit sales.70% collected in the month of sales, 15% in the first month collected after sale, 10% collected in the second month after sale, 4% collected in the third month after sale and 1 % uncollectible.

Required:

1. Compute the estimated total cash collection during October from credit sales.
2. Compute the estimated total cash collection during the fourth quarter from sales made on account during the fourth quarter.