Problem 6-20 Cash receipts schedule LO1] Eastern Auto Parts Inc.has 15 percent of its sales paid for in cash and 85 percent an credit. A credit accounts are collected in the fallowing month Assume the following sales January 65,000 February 55,000 March 100,000 April 45,000 Sales in December of the prior year were $75,000. Prepare a cash receipts schedule for January through April. Input variables: Cash sales % Credit sales % Credit sales collected in Sales: 0.15 percent 085 percent 1 month 65,000 $55,000 $100,000 $45,000 $75,000 anuary March April December of prior year Solution and Explanation: anuary February March April Salees Cash receipts: Cash sales Prior month credit sales Total cash receipts anuary cash sales 15x$65,000 $9,750 anuary's prior month credit sales 85*$75,000 $63,750