TravelGear Co. operates a mail-order business that sells travel accessories. It had sales of $450,000 in November. Because TravelGear Co. is in the mail-order business, all sales are made on account. The company expects a 35 percent drop in sales for December. The balance in the Accounts Receivable account on November 30 was $70,000 and is budgeted to be $40,000 as of December 31.

Requirements:

1. Determine the expected cash collections from accounts receivable during December for TravelGear Co.
2. Discuss whether a 35 percent drop in sales for December is typical for a mail-order business like TravelGear Co.