Reference no: EM132597605

Coyote Loco, Inc., a distributor of salsa, has the following historical collection pattern for its credit sales.

70 percent collected in the month of sale,
15 percent collected in the first month after sale,
10 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             $ 49,000
July                60,000
August             70,000
September        80,000
October            90,000
November        100,000
December        85,000

REQUIRED

Question i. Compute the estimated total cash collections during October from credit sales.

Question ii. Compute the estimated total cash collections during the fourth quarter from sales made on account during the fourth quarter.