Budgeting Cash Collections

Spencer Consulting, which invoices its clients on terms 2/10, n/30, had credit sales for May and June of $105,000 and $120,000, respectively. Analysis of Spencer's operations indicates that the pattern of customers' payments on account is as follows (percentages are of total monthly credit sales):

In month of sale

In month of following sale

Uncollectible accounts, returns, and allowances

Beyond

Receiving Discount

Discount

Period

50%

20%6

15%6

10%

Totals

70%

2596

5%

100%6

Determine the estimated cash collected on customers' accounts in June.