1. Blue Belt Co. is a small manufacturer of belts that began operations on January 1. Its credit sales for the first 6 months of operations were as follows:

Month Credit Sales

January $100,000

February 110,000

March 120,000

April 115,000

May 120,000

June 160,000

Throughout this entire period, the firms credit customers maintained a constant payments pattern; 25% paid in the month of sale, 50% paid in the first month following the sale, and 25% paid in the second month following the sale.

a. What was Blue Belts receivables balance at the end of March and at the end of June? (You must show calculations to receive full credit. (3pts)

b. Assume 90 days per calendar quarter. What were the ADS and DSO for the first and second quarter? You must show calculations to receive full credit. (3pts)

c. Construct an aging schedule as of March 31 and June 30. Use account ages of 0-30, 31-60, and 61-90 days. You must show calculations to receive full credit. (4pts)

d. Construct the uncollected balances schedule for the first and second quarter. You must show calculations to receive full credit. (4pts)