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Eastern Auto Parts Inc. has 25 percent of its sales paid for in cash and 75 percent on credit. All credit accounts are collected in
Eastern Auto Parts Inc. has 25 percent of its sales paid for in cash and 75 percent on credit. All credit accounts are collected in the following month. Assume the following sales: January February March April $ 79,000 69,000 114,000 59,000 Sales in December of the prior year were $89,000. Prepare a cash receipts schedule for January through April. Sales Cash receipts: Cash sales Prior month's credit sales Total cash receipts Eastern Auto Parts Inc. February January $ 76,500 $ March 80,250 $ April 100,250
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