Reference no: EM132776370

Freemore Company has the following sales budget for the last six months of 2020:

July $ 206 000                  October $ 188000

August 170 000                November 203 000

September 206 000           December 182 000

Sales are immediately due, however the cash collection of sales, historically, has been as follows:

65 % of sales collected in the month of sale,

25 % of sales collected in the month following the sale,

8 % of sales collected in the second month following the sale,

2 % of sales are uncollectible.

Problem 1: Cash collections for October are