Coyote Loco, Inc., a distributor of salsa, has the following historical collection pattern for its credit sales. 80 percent collected in the month of sale. 10 percent collected in the first month after sale. 5 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 July August September October November December $ 126,000 153,500 178,500 207,000 232,000 257,000 219,500 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.

Coyote Loco, Inc., a distributor of salsa, has the following historical collection pattern for its credit sales. 80 percent collected in the month of sale. 10 percent collected in the first month after sale. 5 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 July August September October November December $ 126,000 153,500 178,500 207,000 232,000 257,000 219,500 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.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter9: Profit Planning And Flexible Budgets

Section: Chapter Questions

Problem 45BEB: Pilsner Inc. purchases raw materials on account for use in production. The direct materials...

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Coyote Loco, Incorporated, 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: $ 129,000 156,500 181,500 June July August September October November December 213,000 238,000 263,000 225,500 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. 1. Total cash collections 2. Total cash collections
Coyote Loco, Incorporated, a distributor of salsa, has the following historical collection pattern for its credit sales. 70 percent collected in the month of sale. 15 percent collected in the first month after sale. 10 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: $ 49,000 60,000 70,000 June July August September October November December 80,000 90,000 100,000 85,000 EX 9-24 (Static) Part 2: Build a spreadsheet: Construct an Excel spreadsheet... 3. Construct an Excel spreadsheet to solve both of the preceding requirements. Show how the solution will change if the following Information changes: sales in June and July were $50,000 and $65,000, respectively.
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Coyote Loco, Inc., a distributor of salsa, has the following historical collection pattern for its credit sales. 70 percent collected in the month of sale. (LO 9-3, 9-5)15 percent collected in the first month after sale.10 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 ............................................................................................................ $ 49,000July ................................................................................................................ 60,000August ......................................................................................................... 70,000September ................................................................................................. 80,000October…
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