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Please help me solve using excel spreadsheet - The sales for Re-Works Inc., a company...

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Accounting

Please help me solve using excel spreadsheet - The sales for Re-Works Inc., a company that fabricates iron fencing from recycled metals, are all on
account. For the first three months of the year, Re-Works management expects the following sales:
Sales
January
$120,000
February
$130,000
March
$140,000
Based on past collection patterns, management expects the following:
Month of Sale
Month after Sale
Remainder - Second Month after Sale
Also, based on past experience, management forecasts that 5 percent of accounts receivable will be
uncollectible and will eventually be written off.
What are the expected cash receipts for March?
With the same sales forecasts as in question 9, Re-Works Inc. management would like to implement some
changes to credit policy and credit terms that they believe would change the collection pattern going forward
and would lower the uncollectible accounts prediction to 3 percent.
What would be the expected cash receipts for March?
Month of Sale
Month after Sale
55%
Remainder
Bad Debt Expense
image

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