Problem 1

X Corp has the following historical pattern on its credit sales. 70% collected in month of sale 15% collected in the first month after sale 10% collected in the second month after sale 4% collected in the third month after sale 1% bad debts Sales on credit from July to Dec 2020 are as follows: July 60,000 August 70,000 September 80,000 October 90,000 November 100,000 December 85,000 The estimated total cash collections during the fourth quarter from sales made on open account during the fourth calendar quarter would be?

a. 172,500

b. 230,000

c. 251,400

d. 265,400

e. None of the above

**** please show the computation/solution for the problem. it will be a big help if you answer this in 10-20 mins. thank you so much ****