Question:

I am having problem figuring out the uncollected % and the expected to collect %. Watt's Lighting Stores made the following sales projection for the next six months. All sales are credit sales.

March	$	49,000	June	$ 53,000
April		55,000	July	61,000
May		44,000	August	63,000

Sales in January and February were $52,000 and $51,000, respectively. Experience has shown that of total sales, 5 percent are uncollectible, 40 percent are collected in the month of sale, 50 percent are collected in the following month, and 5 percent are collected two months after sale.

a.

Prepare a monthly cash receipts schedule for the firm for March through August

b.	Of the sales expected to be made during the six months from March through August, how much will still be uncollected at the end of August? How much of the uncollected amount does the firm actually expect to collect?(Leave no cells blank - be certain to enter "0" wherever required.)

Watt's Lighting Stores Cash Receipts Schedule
Month of sale	Sales	Uncollected %	Uncollected $	Expect to collect %	Expect to collect $
August	$	%	$	%	$
July
June
May
April
March
		Totals:	$		$