Whitney's, Inc., sells on terms of 5% discount for "cash and carry" or 2/10, n/30 and estimates its total sales for the second calendar quarter of next year as follows: April, $600,000 May, $480,000 and June, $720,000. An analysis of operations indicates the following customer collection patterns:

Budgeting Cash Whitney's, Inc., sells on terms of 5% discount for "cash and carry" or 2/10, n/30 and estimates its total sales for the second calendar quarter of next year as follows April, $600,000 May, $480,000 and June, $720,000. An analysis of operations indicates the following customer collection patterns: Portion of Total Sales In month of sale: Cash at time of sale 25% On account, during discount period 15% 10% On account, after discount period In month following sal On account, during discount period 20% 10% On account, after discount period In second month following sale: On account, after discount period 15% 5% Average portion uncollectible 100%