3. Tulu and Tiringo own a spare parts shop named T&T. July 2012 sales for T&T are expected to be $45,000. 80  percent of each month’s sales is expected to be on credit. The Accounts Receivable balance on June 30 is $11,960, of which $9,000 belongs to  June credit sales. There are no receivables from months prior to May 2010. The collection pattern of credit sales  are 

• 75 percent in the month of sale, 

• 15 percent in the month following the sale,  and

• 10 percent in the second month following the sale. 

T&T’s has no uncollectible accounts. Compute the following.

a. Total sales for May 2012? 

b. Credit sales for June 2012?

c. Projected cash collections for July 2012?