M8-14 (Algo) Preparing Schedule of Cash Receipts [LO 8-4]

Getty Company expects sales for the first three months of next year to be $190,000, $240,000 and $295,000, respectively. Getty expects 30 percent of its sales to be cash and the remainder to be credit sales. The credit sales will be collected as follows: 10 percent in the month of the sale and 90 percent in the following month. Compute a schedule of Gettys cash receipts for the months of February and March.