Question

Fresplanade Co. had the following historical collection pattern for its

credit sales:

75% collected in the month of sale

12% collected in the first month after month of sale

8% collected in the second month after month of sale

3% collected in the third month after month of sale

2% uncollectible

The sales on open account (credit sales) have been budgeted for the last six months of the year as shown below:

July 72,000

August 84,000

Sept 96,000

October 108000

Nov. 120,000

December 102,000

The estimated total cash collections by Fresplanade Co. during November from collection of accounts receivable is:

I need help with the calculation and formula

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