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why on July get 70% not on october? can you explain the discount detail like I do W074 Coyote Loco, Inc., a distributor of salsa,
why on July get 70% not on october? can you explain the discount detail like I do
W074 Coyote Loco, Inc., a distributor of salsa, 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. ignore July The sales on account have been budgeted for the last seven months as follows: 70% 15% 10% 4% June 49,000 June 60,000 July August Sept August August sepem Soch September .... collected in October 80,000 Augu sep OCH October 90,000 Och November 100,000 och December 85,000 70,000 July sep Required: Construct an Excel spreadsheet to: a Compute the estimated total cash collections during October from credit sales. b. Compute the estimated total cash collections during the fourth quarter from sales made on account during the fourth quarter c. Show how the solution will change if the following information changes: Sales in June and July were $50,000 and $65,000 respectively. L EXCEL Step by Step Solution
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