May cash sales 20,000 credit sales 40,000
June cash sales 40,000 credit sales 60,000
July cash sales 60,000 credit sales 80,000
August cash sales 80,000 credit sales 100,000
Collect payments on 50% of credit sales in the month of sale
40% in the month following sale and 5 % in the second month following the sale
Compute the total cash collections in July and it's total cash collection in August

For Jul cash collection you will take credit sales in May of 40,000 * 5% plus credit sales in Jun of 60,000 * 40% plus Credit sales in Jul of 80,000 * 50% plus cash sales in Jul of 60,000

For Aug cash collections you will take credit sales in Jun of 60,000 * 5% plus Jul credit sales of 80,000 * 40% plus credit sales in Aug of 100,000 * 50% plus Cash sales in Aug of 80,000