PROBLEM 14-2
PRO FORMA ACCOUNTS RECEIVABLE BALANCE CALCULATION
A)
DATA
Credit sales			50%
Collection in the month after sales		25%
Collection two months after the sales		75%
Accounts recievable at end of March		18,000
	Jan	Feb	Mar	Apr
Sales	60,000	65,000	70,000	60,000
Credit sales	30,000	32,500	35,000	30,000
Accounts receivable from sales in Mar			26,250		0.75
Account receivable from sales in Apr			30,000
Accounts receivable at the end of April			0
B)
Cash sales				30,000
Prior month credit sales	25%		8,750
Two months prior credit sales	75%		24,375
Cash collected during April			0