J. Lo’s Clothiers has forecast credit sales for the fourth quarter of the year as:
September (actual)......................$70,000
Fourth Quarter
October ....................................$60,000
November ................................ 55,000
December ................................. 80,000
Experience has shown that 30 percent of sales are collected in the month of sale, 60 percent in the following month, and 10 percent are never collected.
Prepare a schedule of cash receipts for J. Lo’s Clothiers covering the fourth quarter (October through December).