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    LaShawnaD's Avatar
    LaShawnaD Posts: 1, Reputation: 1
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    #1

    Aug 1, 2013, 03:59 PM
    Cash collections from customers
    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:


    Cash collection records pertaining to sales on account indicate the following collection pattern:


    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.

    Oct.:
    Nov.:
    Dec.:
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Aug 1, 2013, 04:08 PM
    You do not have enough information to solve your problem. You need to know the percentages of collections are. As an example 70% in the month of sale, 20% in the month following the sale, and 5% two months following the sale. With 5% remaining uncollectible.
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