Sales on account for the first two months of the current year are budgeted as follows.
January $ 966,000
February 650,000
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
Total 100 %
Compute the estimated cash collections on accounts receivable for the month of February.