Cash collections
Ridenour Ltd. Is preparing its first-quarter monthly cash budget for year 4. The following information is available about actual year 3 sales and expected year 4 sales:
November	83,000
December	76,000
January	79,000
February	88,000
March	59,000
Tracing collections from prior year monthly sales and discussions ith the credit manager helped develop a profile of collection behavior patterns. Of a given month's sale, 40 percent is typically collected in the month of sale. Because the company terms are 1 percent (end of month) net 30, all collections within the month of sale are net of the 1 percent discount. Of a given month's sales, 30 percent is collected in the month following the sale. the remaining 30 percent is collected in the second month following the month of the sale. Bad debt are negligible and should be ignored.
a. Prepare a schedule of cash collection for Ridenour Ltd. For January, February, and March of year 4.
b. Calculate the Accounts Receivable balance at March 31, year 4.