Short Answer Questions 1. Arnold's Purse Company expects sales in the fourth quarter of 20X1 as follows: October $ 350,000 November $ 520,000 December $ 440,000 Historical data shows that the company collects 75% of its sales in the month of sale and 25% in the month following the sale. On October 1, 20X2, accounts receivable related to third quarter sales totaled $70,000, which is expected to be collected in October. Prepare a schedule of cash receipts for each month in the fourth quarter What amount of accounts receivable will be outstanding on December 31