5. ABC Company is preparing their master budget and is preparing a schedule of expected cash collections from sales for the first quarter of 2019. They expect sales in January to be $400,000, February to be $300,000, and March to be $500,000. !0% of the sales will be paid for in cash. The remainder will be charged on account. From past experience, the company knows their customers take 3 months to pay their bills in total, with 40% of a months sales on account collected in the month of sale, another 50% collected in the month following sale, and the remaining 10% are collected in the second month following sale. All credit sales are collected. The amount of credit sales in October 2018 totaled $600,000, November 2018 totaled $700,000, and December 2018 totaled $800,000.

1. Prepare a schedule of expected cash collections from sales for only January and February 2019.

January February

2. What is the expected accounts receivable balance on March 31, 2019? $_________________

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