Dacahr Bros., Inc., is an automobile maintenance and repair company with outlets throughout the western United States. Henley Turlington, the company controller, is starting to assemble the cash budget for the fourth quarter. Projected sales for the quarter are as follows
Credit
- Oct 457000
- Nov 590000
- Dec 720500
Cash
- Oct 196800
- Nov 214000
- Dec 218400
Cash collection records pertaining to sales on account indicate the following collection pattern:
- Month of sale 40%
- First month following sales 30%
- Second month following sales 28%
- Uncollectible 2%
Sales on account during August were $346,000. During September, sales on account were $395,000. Compute the amount of cash to be collected from customers during each month of the fourth quarter.
Total Cash Collected from Customers
- October
- November
- December