Refer to the Yeaman’s schedule of cash receipts from customers that you prepared in Short Exercise S22-9. Now assume that Yeaman’s sales are collected as follows:
In short exercise Yeaman expects total sales of $333,000 in January and $407,000 in February. Assume that Yeaman’s sales are collected as follows:
50% in the month of the sale
30% in the month after the sale
18% two months after the sale
2% never collected
Prepare a revised schedule of cash receipts for January and February.