Watt's Lighting Stores made the following sales projection for the next six months. All sales are...

 

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Watt's Lighting Stores made the following sales projection for the next six months. All sales are credit sales. March April May June July August $ 38,000 44,000 33,000 42,000 50,000 52,000 Sales in January and February were $41,000 and $40,000, respectively. Experience has shown that of total sales, 10 percent are uncollectible, 35 percent are collected in the month of sale, 45 percent are collected in the following month, and 10 percent are collected two months after sale. Prepare a monthly cash receipts schedule for the firm for March through August. Watt's Lighting Stores made the following sales projection for the next six months. All sales are credit sales. March April May June July August $ 38,000 44,000 33,000 42,000 50,000 52,000 Sales in January and February were $41,000 and $40,000, respectively. Experience has shown that of total sales, 10 percent are uncollectible, 35 percent are collected in the month of sale, 45 percent are collected in the following month, and 10 percent are collected two months after sale. Prepare a monthly cash receipts schedule for the firm for March through August.

Answer rating: 100% (QA)

To prepare a monthly cash receipts schedule for Watts Lighting Stores for March through August we need to calculate the cash collections for each mont... View the full answer