Ed$$s Waterbeds has made the following sales projections for the next six months. All sales are credit sales.

March $ $12,000$ June $ $14,000$

April $16,000$ July $17,000$

May $10,000$ August $18,000$

Sales in January and February were $$13,500$ and $$13,000$ respectively.

Experience has shown that $10$ percent of total sales are uncollectible, $30$ percent are collected in the month of sale, $40$ percent are collected in the following month, and $20$ percent are collected two months after sale.

a$.$ Prepare a monthly cash receipts schedule for the firm for March through August.

Ed$$s Waterbeds

Cash Receipts Schedule

January February March April May June July August

Sales $

$

$

$

$

$

$

$

Collections of current sales

Collections of prior month's sales

Collections of sales $2$ months earlier

Total cash receipts $

$

$

$

$

$

b$.$ Of the sales expected to be made during the six months from March to August, how much will still be uncollected at the end of August? How much of this is expected to be collected later?

Amount

Uncollected $

Expected to be collected $