The law firm of Hendricks & Hendricks is preparing a cash receipts schedule for the first quarter of 2005. Service revenue for November and December 2004 are expected to be

\($90,000\) and \($50,000\), respectively. All billings are on account. There are no “cash sales.”

Budgeted service revenue for the first quarter of 2005 is presented here.

Expected collection pattern:
30 percent in the month of sale 60 percent in the month following the sale 10 percent in the second month following the sale 0 percent uncollectible Required: Prepare a cash receipts schedule for the first quarter of 2005.

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Hendricks & Hendricks Service Revenue Budget For the Quarter Ended March 31, 2005 Budgeted Service Revenue Jan Feb $40,000 $50,000 Mar $65,000 Total $155,000