Reference no: EM133020558

Question - Sales on account for the first two months of the current year are budgeted as follows.

January $315,000

February 797,000

All sales are made on terms of 2/10, n/30 (2 percent discount if paid in 10 days, full amount by 30 days); collections on accounts receivable are typically made as follows.

Collections within the month of sale: Within discount period60%After discount period15 Collections within the month following sale: Within discount period15 After discount period7 Returns, allowances, and uncollectibles3 Total100%

Compute the estimated cash collections on accounts receivable for the month of February.