Reference no: EM132659541

Sales on account for the first two months of the current year are budgeted as follows.

January $311,000

February 572,000

All sales are made on terms of 2/10, n/30 (2 percent discount if paid in 10 days, full amount by 30 days); collections on accounts receivable are typically made as follows.

Collections within the month of sale:

Within discount period 60%

After discount period 15

Collections within the month following sale:

Within discount period 15

After discount period 7

Returns, allowances, and uncollectibles 3

Total100%

Problem 1: Compute the estimated cash collections on accounts receivable for the month of February.