Please help me solve using excel spreadsheet $-$ The sales for Re$-$Works Inc., a company that fabricates iron fencing from recycled metals, are all on

account. For the first three months of the year, Re$-$Works management expects the following sales:

Sales

January

$$120,000$

February

$$130,000$

March

$$140,000$

Based on past collection patterns, management expects the following:

Month of Sale

Month after Sale

Remainder $-$ Second Month after Sale

Also, based on past experience, management forecasts that $5$ percent of accounts receivable will be

uncollectible and will eventually be written off.

What are the expected cash receipts for March?

With the same sales forecasts as in question $9,$ Re$-$Works Inc. management would like to implement some

changes to credit policy and credit terms that they believe would change the collection pattern going forward

and would lower the uncollectible accounts prediction to $3$ percent.

What would be the expected cash receipts for March?

Month of Sale

Month after Sale

$55\%$

Remainder

Bad Debt Expense