Company projects the following sales for the first three months of the year: $11,200 in January; $12,200 in February; and $14,100 in March. The company expects 60%of the sales to be cash and the remainder on account. Sales on account are collected 50% in the month of the sale and 50% in the following month. The Accounts Receivable account has a zero balance on January 1. Round to the nearest dollar.

Cash Receipts from Customers
		January	February	March	Total
Total sales		$11,200	$12,200	$14,100	$37,500
		January	February	March	Total
Cash Receipts from Customers:
Accounts Receivable balance, January 1
January—Cash sales		$6,720
January—Credit sales, collection of January sales in January		2,240
January—Credit sales, collection of January sales in February			$2,240
February—Cash sales			7,320
February—Credit sales, collection of February sales in February			2,440
February—Credit sales, collection of February sales in March				$2,440
March—Cash sales				8,460
March—Credit sales, collection of March sales in March				2,820
Total cash receipts from customers		$8,960	$12,000	$13,720	$34,680
Accounts Receivable balance, March 31:
March—Credit sales, collection of March sales in April		$2,820

Prepare a revised schedule of cash receipts if receipts from sales on account are 70%in the month of thesale, 20% in the month following the sale, and 10% in the second month following the sale. What is the balance in Accounts Receivable on March 31?

(Leave unused and zero balance account cells blank, do not enter "0".)

Cash Receipts from Customers
		January	February	March	Total
Total sales		11,200	12,200	14,100	37,500
		January	February	March	Total
Cash Receipts from Customers:
Accounts Receivable balance, January 1
January—Cash sales		6,720
January—Credit sales, collection of January sales in January		3,136
January—Credit sales, collection of January sales in February			?
January—Credit sales, collection of January sales in March				?
February—Cash sales			7,320
February—Credit sales, collection of February sales in February			3,416
February—Credit sales, collection of February sales in March				976
March—Cash sales				8,460
March—Credit sales, collection of March sales in March				3,948
Total cash receipts from customers		9,856
Accounts Receivable balance, March 31:
Credit sales, collection in April and May		$ ?

Please show your work.

Answer rating: 100% (QA)

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