Ed's Waterbeds has made the following sales projections for the next six months. All sales are credit sales. March April May $ 39,000 June $ 43,000 45,000 July 51,000 34,000 August 53,000 Sales in January and February were $42,000 and $41,000 respectively. Experience has shown that 5 percent of total sales are uncollectible, 40 percent are collected in the month of sale, 50 percent are collected in the following month, and 5 percent are collected two months after sale. a. Prepare a monthly cash receipts schedule for the firm for March through August Sales Collections of current sales Collections of prior month's sales Collections of sales 2 months earlier Total cash receipts Ed's Water Cash Receipts January February Marc $ 42000 $ 41000 $ 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? Uncollected Expected to be collected Amount 14 14 $