Problem - ABC Company has the following historical collection pattern for its credit sales:
65% collected in month of sale
20% collected in the first month after sale
8% collected in the second month after sale
5% collected in the third month after sale
2% uncollectible
Credit sales are for the last 6 months are as follows:
Jul $35,000
Aug 40,000
Sep 45,000
Oct 50,000
Nov 55,000
Dec 43,000
Calculate the estimated total cash collections during October.