You have been provided with the following information for Cuppa Cup, a business that sells and delivers take away coffees in the CBD.

Required:

You are required to calculate the receipts from Accounts receivable for the months of October, November, and December 2023 based on the information provided below. You can assume that there are no cash sales.

Past experience shows that accounts are settled as follows:

70% in the month of the sale

15% in the month following the sale

13% in the second month following the sale

2% of customers never settle their accounts

Actual Actual Estimated Estimated Estimated

August September October November December

Sales $200,000 $250,000 $220,000 $270,000 $300,000