Tokyo wholesaler was preparing its sales budget for the first quarter of 2007.
Forecast sales are (in thousands of yen)

Sales are 20 percent cash and 80 percent on credit. Fifty percent of the
credit accounts are collected in the month of sale, 40 percent in the month following
the sale, and 10 percent in the following month. No uncollectible
accounts are anticipated. Accounts receivable at the beginning of 2007 are

¥96 million (10 percent x November credit sales of ¥180 million and 50 percent
of December credit sales of ¥156 million).
Prepare a schedule showing sales and cash collections for January,
February, and March, 2007.

Transcribed Image Text:

January 180,000 February March 210,000 240,000