Simpson Glove Company has made the following sales projections for the next six months. All sales...

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Finance

Simpson Glove Company has made the following sales projectionsfor the next six months. All sales are credit sales.

  

March$52,000June$58,000
April61,000July69,000
May43,000August73,000

  

Sales in January and February were $41,000 and $39,000,respectively. Experience has shown that of total sales receipts 10percent are uncollectible, 35 percent are collected in the month ofsale, 25 percent are collected in the following month, and 30percent are collected two months after sale.

Prepare a monthly cash receipts schedule for the firm for Marchthrough August.

Simpson Glove Company
Cash Receipts Schedule
JanuaryFebruaryMarchAprilMayJuneJulyAugust
Credit sales
In month of sale
One month after sale
Two months after sale
Total cash receipts

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Simpson Glove Company has made the following sales projectionsfor the next six months. All sales are credit sales.  March$52,000June$58,000April61,000July69,000May43,000August73,000  Sales in January and February were $41,000 and $39,000,respectively. Experience has shown that of total sales receipts 10percent are uncollectible, 35 percent are collected in the month ofsale, 25 percent are collected in the following month, and 30percent are collected two months after sale.Prepare a monthly cash receipts schedule for the firm for Marchthrough August.Simpson Glove CompanyCash Receipts ScheduleJanuaryFebruaryMarchAprilMayJuneJulyAugustCredit salesIn month of saleOne month after saleTwo months after saleTotal cash receipts

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