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Problem 3. Taura Corp has the following past information for its credit sales: 60% of sales are collected in month of sale 25% of sales are collected in the month after sale 8% of sales are collected in the second month after sale 5% of sales are collected in the third month after sale 2% uncollectible Credit sales for the last six months of the year are budgeted as follow. July August September October US$20,000 25,000 30,000 35,000 40,000 32,500 November December Required: Calculate the estimated total cash collections during the year's fourth quarter (October, November, and December).

Problem 3. Taura Corp has the following past information for its credit sales: 60% of sales are collected in month of sale 25% of sales are collected in the month after sale 8% of sales are collected in the second month after sale 5% of sales are collected in the third month after sale 2% uncollectible Credit sales for the last six months of the year are budgeted as follow. July August September October US$20,000 25,000 30,000 35,000 40,000 32,500 November December Required: Calculate the estimated total cash collections during the year's fourth quarter (October, November, and December).

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Problem 3. Taura Corp has the following past information for its credit sales: 60% of sales are collected in month of sale 25% of sales are collected in the month after sale 8% of sales are collected in the second month after sale 5% of sales are collected in the third month after sale 2% uncollectible Credit sales for the last six months of the year are budgeted as follow. July August September October US$20,000 25,000 30,000 35,000 40,000 32,500 November December Required: Calculate the estimated total cash collections during the year's fourth quarter (October, November, and December).
Transcribed Image Text:Problem 3. Taura Corp has the following past information for its credit sales: 60% of sales are collected in month of sale 25% of sales are collected in the month after sale 8% of sales are collected in the second month after sale 5% of sales are collected in the third month after sale 2% uncollectible Credit sales for the last six months of the year are budgeted as follow. July August September October US$20,000 25,000 30,000 35,000 40,000 32,500 November December Required: Calculate the estimated total cash collections during the year's fourth quarter (October, November, and December).
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