Cash Collections and Receivables. Past experience has demonstrated that 70 percent of the net sales billed in a month by Henry Company is collected during the month, 20 percent is collected in the following month, and 10 percent is collected in the second following month.

On January 1, 1999, the forecast net accounts receivable balance is $183,000.
Required:
Prepare a schedule of expected collections on accounts receivable for each of the first six months of 1999, and show the estimated balance of net accounts receivable at the end of each month.

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A record of estimated net sales by month is given as follows: 1998 November. $450,000 1999 March. December 460,000 April 1999 January 480,000 May February 420,000 June $500,000 550,000 600,000 700,000