Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. coyote loco, inc., a distributor of salsa, has the

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

60.1K

Verified Solution

Question

Accounting

Coyote Loco, Inc., a distributor of salsa, has the following historical collection pattern for its credit sales. 60 percent collected in the month of sale. 20 percent collected in the first month after sale. 15 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 $131,000 July 158,500 August 183,500 September 217,000 October 242,000 November 267,000 December 229,500 Required:

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

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

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students