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

 

Transcribed Image Text:

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 $ 49,000 55,000 44,000 53,000 61,000 63,000 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. Prepare a monthly cash receipts schedule for the firm for March through August. Credit sales Collections: In month of sale Watt's Lighting Stores Cash Receipts Schedule January February March April May June July August One month after sale Two months after sale Total cash receipts S 0 $ 0 $ 0 $ 0 $ 0 $ 0 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 $ 49,000 55,000 44,000 53,000 61,000 63,000 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. Prepare a monthly cash receipts schedule for the firm for March through August. Credit sales Collections: In month of sale Watt's Lighting Stores Cash Receipts Schedule January February March April May June July August One month after sale Two months after sale Total cash receipts S 0 $ 0 $ 0 $ 0 $ 0 $ 0

Answer rating: 100% (QA)

Watts Lighting Stores Cash Receipts Schedule Month Credit Sales In Month of Sale 40 One Month Af... View the full answer