Calculating Cash Collections

1. ABC Corporation has the following sales collection policy: 20% of the sales are on cash and the remainder on credit. 50% of the credit sales are received in the first month after the sale. 30% of the credit sales are received in the second month after the sale. 15% of the credit sales are received in the third month of after the sale. 5% of the credit sales are bad debts and not received. Suppose the company has the following expected sales: Jan $50,000, Feb $60,000, March $70,000, April $45,000, May $66,000. Determine the cash collections for May.
2. ABC Corporation has the following sales collection policy: 25% of the sales are received in the same month, 50% of the sales are received in the first month after the sale. 20% of the sales are received in the second month after the sale. The remainder are received in the third month after the sale. Suppose the company has the following expected sales: Jan $50,000, Feb $60,000, March $70,000, April $45,000, May $66,000. Determine the cash collections for May.