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Chrystal Pools Inc. is preparing its budget for the first quarter of 2021. The next step in the budgeting process is to prepare a cash

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Chrystal Pools Inc. is preparing its budget for the first quarter of 2021. The next step in the budgeting process is to prepare a cash receipts schedule and a cash payments schedule. To that end the following information has been collected. Clients usually pay 50% of their fee in the month that service is provided, 40% the month after, and 10% the second month after receiving service. Actual service revenue for 2020 and expected service revenues for 2021 are: November 2020, $100,000; December 2020, $70,000; January 2021, $110,000; February 2021, $120,000; March 2021, $130,000. Purchases of pool supplies (direct materials) are paid 60% In the month of purchase and 40% the following month. Actual purchases for 2020 and expected purchases for 2021 are: December 2020, $16,000, January 2021, $13,000; February 2021. $15,000; March 2021, $20,000. Instructions: (a) Prepare the following schedules for February 2021: (1) Expected collections from clients. (2) Expected payments for pool supplies. (b) Determine the following balances at February 28, 20215 (1) Accounts receivable. (2) Accounts payable

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