Graham Company projects the following sales for the first three months of theyear: $15,800 in January; $10,100
Question:
Graham Company projects the following sales for the first three months of theyear: $15,800 in January; $10,100 in February; and $11,100 in March. The company expects 60% of the sales to be cash and the remainder on account. Sales on account are collected50% in the month of the sale and50% in the following month. The Accounts Receivable account has a zero balance on January 1. Round to the nearest dollar.
1. Prepare the schedule of cash receipts for Graham for January, February, and March. What is the balance in Accounts Receivable on March 31?
2. Prepare the revised schedule of cash receipts if receipts from sales on account are 60% in the month of thesale, 15% in the month following thesale, and 25% in the second month following the sale. What is the balance in Accounts Receivable on March 31?
Prepare the schedule of cash receipts for Graham for January, February, and March. What is the balance in Accounts Receivable on March 31? (If an input field is notused, leave the input field empty. Do not enter azero.)