Cash Receipts Bingo:

Bingo Inc. sells bingo cards to casinos, bingo halls, and bingo lodges internationally. Bingo Inc. extends a micro line of credit to all their customers, the terms of the micro financing require that customers pay for 20% of their purchase at the time of sale, 10% of the purchase one month after the sale, and the remaining balance is then due two months after the sale.

Construct a schedule of cash receipts for Bingos October ($320,000), November ($250,000), and December ($640,000) sales and answer the following 3 questions:

1. How much cash was collected in December for credit sales in November? 2. How much cash was collected in November for sales on account? 3. If these were the only sales for the year, how much did Bingo Inc. report in Accounts

Receivable on their 12/31 balance sheet?