Cash receipts budget Chris McAlister Company is preparing its cash receipts budget for the months of February, March, and April. It makes all sales on account and typically experiences collections as follows: 10 percent of sales are collected in the month of sale, 60 percent in the month after the sale, 20 percent 2 months after the sale, and 8 percent 3 months after the sale. It experiences uncollectible accounts of about 2 percent of sales. On January 31, the company's balance of accounts receivable was $226,500 and its allowance for doubtful accounts was $1,500. Sales for the past 3 months and sales projections for the next 3 months are as follows:

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November.... December January.... February March... April $410,000 340,000 360,000 390,000 400,000 420,000