(Cash collections) Bentham Company is developing its first-quarter monthly cash budget for 2000 and is having difficulty determining its expected cash collections. On investigation, the following actual and expected sales information was revealed:

November December January February March

$41,500 $38,000 $29,500 $34,000 $39,500 Tracing of collections from prior-year monthly sales and discussions with the credit manager helped develop a profile of collection behavior patterns.
Of a given month’s sales, 40 percent are typically collected in the month of sale. Because the company terms are 1 percent EOM (end of month), net 30, all collections within the month of sale are net of the 1 percent discount.
Thirty percent of a given month’s sales are collected in the month following the sale. The remaining 30 percent are collected in the second month following the month of the sale. Bad debts are negligible and should be ignored.

a. Prepare a schedule of cash collections for Bentham Company by month for January, February, and March.

b. Calculate the Accounts Receivable balance at March 31.