Question: Can someone help me determine the correct response to #2? CoursHeroTranscribedText: Coyote Loco, Inc., a distributor of salsa, has the following historical collection pattern for

Can someone help me determine the correct response to #2?

Can someone help me determine the correct response to #2? CoursHeroTranscribedText: Coyote

CoursHeroTranscribedText: Coyote Loco, Inc., a distributor of salsa, has the following historical collection pattern for its credit sales. 80 percent collected in the month of sale. 10 percent collected in the first month after sale. 5 percent collected in the second month after sale. 4 percent collected in the third month after sale. 1 percent uncollectible. The sales on account have been budgeted for the last seven months as follows: June $ 124 , 000 July 151 , 500 August 176, 500 September 203, 000 October 228, 000 November 253 , 000 December 215 , 500 Required: 1. Compute the estimated total cash collections during October from credit sales. 2. Compute the estimated total cash collections during the fourth quarter from sales made on account during the fourth quarter. 1 . Total cash collections $ 217,585 2. Total cash collections

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!