Question

Scottsdale company has actual sales for july and august and forecast sales for september, october, november, and december as follows: actual: july $ 98,100 august 104,900 forecast: september 114,800 october 94,600 november 123,000 december 107,000 based on past experience, it is estimated that 30% of a month’s sales are collected in the month of sale, 50% are collected in the month following the sale, and 12% are collected in the second month following the sale. required: calculate the estimated cash receipts for september, october, and november.

Answer 1

To calculate the estimated cash receipts for September, October, and November, we need to apply the given collection percentages to the forecasted sales.

Step-by-step explanation:

To calculate the estimated cash receipts for September, October, and November, we need to apply the given collection percentages to the forecasted sales. Let's start with September:

1. 30% of September's forecasted sales of $114,800 will be collected in September. This equals $34,440.
2. 50% of September's forecasted sales will be collected in October. This equals $57,400.
3. 12% of September's forecasted sales will be collected in November. This equals $13,776.

Therefore, the estimated cash receipts for September, October, and November are $34,440, $57,400, and $13,776, rez