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Espinosa Company has the following historical pattern on its credit sales.
70 percent collected in month of sales
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 sales
1 percent uncollectible
The sales on open account have been budgeted for the last 6 months of 2018 as shown below.
July P 60,000
August 70,000
September 80,000
October 90,000
November 100,000
December 85,000
Problem 1: The estimated total cash collections for October 2018 from accounts receivable would be
A. P84,400
B. P 21,400
C. P89,100
D. P63,000
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