7-31 Sales Budget A Sendai clothing wholesaler was preparing its sales budget for the first quarter of 20X8. Forecast sales are as follows (All values are in thousands of yen). January 203,000 February v227,000 March 248,000 Sales are 40 % cash and 60 % on credit. Fifty-five percent of the credit accounts are collected in the month of sale, 35 % in the month following the sale, and 10 % in the following month. No uncollectible accounts are anticipated. Accounts receivable at the beginning of 20X8 are V82,950 (10% of November credit sales of 150,000 and 45% of December credit sales of 151,000). Prepare a schedule showing sales and cash collections for January, February, and March, 20X8 J' 7-32 Cash Collection Budget Northwest Equipment offers a 3 % discount to customers who pay cash at the time of sale and a 2% discount to customers who pay within the first 10 days of the month after sale. Past experience shows that cash collections from customers tend to occur in the following pattern: Cash collected at time of sale 55% Collected within cash discount period in first 10 days of month after sale 15 Collected after cash discount period in first month after month of sale 10 Collected after cash discount period in second month after month of sale 15 Never collected 5