Question
Requirements: 1. Prepare a schedule of cash receipts for Carmen for January, February, and March. What is the balance in Accounts Receivable on March 31?
Requirements:
1. | Prepare a schedule of cash receipts for Carmen forJanuary, February, andMarch. What is the balance in Accounts Receivable onMarch 31? |
2. | Prepare a revised schedule of cash receipts if receipts from sales on account are 60% in the month of the sale,25% in the month following the sale, and15% in the second month following the sale. What is the balance in Accounts Receivable onMarch 31? |
Carmen
Company projects the following sales for the first three months of the year:
$12,400
in
January;
$12,200
in
February;
and
$13,400
in
March.
The company expects
70%
of the sales to be cash and the remainder on account. Sales on account are collected 50% in the month of the sale and 50% in the following month. The Accounts Receivable account has a zero balance on
January
1. Round to the nearest dollar.Read the requirements
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Question content area bottom
Part 1
Requirement 1. Prepare a schedule of cash receipts for
Carmen
for
January,
February,
and
March.
What is the balance in Accounts Receivable on
March
31?
(If an input field is not used, leave the input field empty. Do not enter a zero.)
Cash Receipts from Customers |
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| January | February | March | Total | |
Total sales |
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| January | February | March | Total |
Cash Receipts from Customers: |
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Accounts Receivable balance, January 1 |
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JanuaryCash sales |
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JanuaryCredit sales, collection of January sales in January |
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JanuaryCredit sales, collection of January sales in February |
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FebruaryCash sales |
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FebruaryCredit sales, collection of February sales in February |
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FebruaryCredit sales, collection of February sales in March |
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MarchCash sales |
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MarchCredit sales, collection of March sales in March |
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Total cash receipts from customers |
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Accounts Receivable balance, March 31: |
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MarchCredit sales, collection of March sales in April |
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Part 2
Requirement 2. Prepare a revised schedule of cash receipts if receipts from sales on account are
60%
in the month of the sale,
25%
in the month following the sale, and
15%
in the second month following the sale. What is the balance in Accounts Receivable on
March
31?
(If an input field is not used, leave the input field empty. Do not enter a zero.)
Cash Receipts from Customers |
|
|
|
| |
| January | February | March | Total | |
Total sales |
|
|
|
| |
|
| January | February | March | Total |
Cash Receipts from Customers: |
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Accounts Receivable balance, January 1 |
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JanuaryCash sales |
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JanuaryCredit sales, collection of January sales in January |
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JanuaryCredit sales, collection of January sales in February |
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JanuaryCredit sales, collection of January sales in March |
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FebruaryCash sales |
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FebruaryCredit sales, collection of February sales in February |
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FebruaryCredit sales, collection of February sales in March |
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MarchCash sales |
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MarchCredit sales, collection of March sales in March |
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Total cash receipts from customers |
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Accounts Receivable balance, March 31: |
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Credit sales, collection in April and May |
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