Frank's Sporting Goods projects sales for the second quarter of 2006 to be as follows:

April	$100,000
May	$120,000
June	$110,000

Ten percent of Frank's sales are for cash, 70% of accounts receivable are collected one month following the sale, and the rest are collected two months following the sale. January sales were $40,000, February sales were $60,000, and March sales were $80,000.

A) Prepare a monthly schedule of cash receipts for the second quarter of 2006.

B) What is the balance in accounts receivable at the end of June?

Answer rating: 100% (QA)

To prepare the monthly schedule of cash receipts for the second quarter of 2006 we need to calculate ... View the full answer