Paradise, Inc., a distributor of suntan lotion, has the following historical collection pattern for its credit sales.

The sales on account have been budgeted for the last seven months as follows:

Required:
A. Compute the estimated total cash collections during August from credit sales.
B. Compute the estimated total cash collections during the August - October quarter from sales made on account during this quarter.

Question

Paradise, Inc., a distributor of suntan lotion, has the following historical collection pattern for its credit sales.
  
The sales on account have been budgeted for the last seven months as follows:
  
Required: 
A. Compute the estimated total cash collections during August from credit sales.
B. Compute the estimated total cash collections during the August - October quarter from sales made on account during this quarter.

Quizplus · Accepted Answer

The Answer of Paradise, Inc., a distributor of suntan lotion, has the following historical collection pattern for its credit sales.
  
The sales on account have been budgeted for the last seven months as follows:
  
Required: 
A. Compute the estimated total cash collections during August from credit sales.
B. Compute the estimated total cash collections during the August - October quarter from sales made on account during this quarter.