Green Friends Ltd is a garden design and landscaping business that started operations on 1 September 2020. The following information has been provided by the firm.

In September, cash sales were $15,000 and credit sales $35,000. Total expected sales in the following three months are: $60,000 in October; $80,000 in November; and $95,000 in December. The company expects 30% of the sales of each month to be cash sales and the remainder credit sales. Credit sales are expected to be collected 60% in the month of the sale, 20% in the next month, and 20% in the following month.

All purchases of inventory are on credit. Purchases of inventory in September were $30,000. The company estimates purchases in the following three months to be: $26,000 in October, $30,000 in November and $32,000 in December. Purchases are paid 60% in the month of purchase, and 40% in the following month.

Wages expense is estimated to be $20,000 in October, $22,000 in November and $22,000 in December, paid in cash.

Other operating expenses are budgeted to be $24,000 in October, $26,000 in November and $30,000 in December, paid in cash.

Depreciation expenses of $1,200 are expected in October and $1,500 in November and December.

The cost of sales is estimated as 40% of sales revenue each month.

At the beginning of October, a truck was purchased for $30,000 and paid cash.

On 1^st December an advance payment of $25,000 will be paid to start a building construction.

Cash proceeds for a loan to be received on October: $40,000

The cash balance at 1^st October 2020 was $5,500

1. Prepare a Budgeted Income Statement for the period October December 2020.

Budgeted Income Statement For the period October December 2020
	October - December ($)

2. Prepare a schedule of estimated receipts from debtors (accounts receivable) for the months of October, November and December 2020.

		Month of cash collection
Month	Credit Sales	Oct	Nov	Dec

1. What is the amount of accounts receivable at 31^st December 2020?