A Sendai clothing wholesaler was preparing its sales budget for the first quarter of 20X8. Forecast sales

Question:

A Sendai clothing wholesaler was preparing its sales budget for the first quarter of 20X8. Forecast sales are as follows (All values are in thousands of yen).

January …. ¥203,000

February … ¥227,000

March …… ¥248,000

Sales are 40% cash and 60% on credit. Fifty-five percent of the credit accounts are collected in the month of sale, 35% in the month following the sale, and 10% in the following month. No uncollectible accounts are anticipated. Accounts receivable at the beginning of 20X8 are ¥82,950 (10% of November credit sales of ¥150,000 and 45% of December credit sales of ¥151,000).

Prepare a schedule showing sales and cash collections for January, February, and March, 20X8.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...