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

March	$43,000		June	$47,000
April	49,000		July	55,000
May	38,000		August	57,000

Sales in January and February were $52,000 and $51,000, respectively. Experience has shown that of total sales, 5 percent are uncollectible, 40 percent are collected in the month of sale, 50 percent are collected in the following month, and 5 percent are collected two months after sale.

a. Prepare a monthly cash receipts schedule for the firm for March through August.

	January	February	March	April	May	June	July	August
Credit Sales
In month of sale
One month after sale
Two months after sale
Total cash receipts

Answer rating: 100% (QA)

solution January February 5200000 5100000 Credit Sales In month of sale On... View the full answer