1. Monitoring of Receivables. The Russ Fogler company, a small manufacturer of cordless telephones, began operations on January 1. Its credit sales for the first 6 months of operations were as follows:

Month Credit Sales

January $120,000

February 100,000

March 50,000

April 160,000

May 140,000

June 105,000

Throughout this entire period, the firms credit customers maintained a constant payments pattern; 20% paid in the month of sale, 30% paid in the first month following the sale, and 50% paid in the second month following the sale.

1. What was Foglers receivables balance at the end of March and at the end of June? You must show calculations to receive full credit. (2pts)

2. Assume 90 days per calendar quarter. What were the ADS and DSO for the first and second quarter? You must show calculations to receive full credit. (3pts)

3. Construct an aging schedule as of June 30. Use account ages of 0-30, 31-60, and 61-90 days. You must show calculations to receive full credit. (3pts)

4. Construct the uncollected balances schedule for the second quarter as of June 30. You must show calculations to receive full credit. (3pts)