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J. Lo's Clothiers has forecast credit sales for the fourth quarter of the year: Experience has shown that 40 percent of sales are collected in
J. Lo's Clothiers has forecast credit sales for the fourth quarter of the year: Experience has shown that 40 percent of sales are collected in the month of sale, 50 percent are collected in the following month, and 10 percent are never collected. Prepare a schedule of cash receipts for J. Lo's Clothiers covering the fourth quarter (October through December). Graham Potato Company has projected sales of $9,000 in September, $12,500 in October, $19,000 in November, and $15,000 in December. Of the company's sales, 30 percent are paid for by cash and 70 percent are sold on credit. Experience shows that 40 percent of accounts receivable are paid in the month after the sale, while the remaining 60 percent are paid two months after. Determine collections for November and December. Also assume Graham's cash payments for November and December are $16,000 and $8,500, respectively. The beginning cash balance in November is $5,000, which is the desired minimum balance. a. Prepare a cash receipts schedule for November and December
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