September Actual ($) September Actual ($) November Estimated ($) December Estimated ($)
Cash sales 7,000 6,000 8,000 6,000
Credit sales 50,000 48,000 62,000 80,000
Total sales 57,000 54,000 70,000 86,000
Past experience indicates net collections normally occur in the following pattern: No collections are made in the month of sale, 80 percent of the sales of any month are collected in the following month, 19 percent of sales are collected in the second following month, and 1 percent of sales are uncollectible.
Compute (a) total cash receipts for November and December, and (b) accounts receivable balance at November 30 if the October 31 balance is $50,000.