Question
Watts Lighting Stores made the following sales projection for the next six months. All sales are credit sales. March $50,000 April 56,000 May 45,000 June
Watts Lighting Stores made the following sales projection for the next six months. All sales are credit sales.
March $50,000
April 56,000
May 45,000
June 54,000
July 62,000
August 64,000
Sales in January and February were $53,000 and $52,000, respectively. Experience has shown that of total sales, 10 percent are uncollectible, 30 percent are collected in the month of sale, 40 percent are collected in the following month, and 20 percent are collected two months after sale. a. Prepare a monthly cash receipts schedule for the firm for March through August.
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