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Wells Catering Inc. is a caterer of corporate lunches and events. The following is Wells's sales forecast by quarter for the upcoming year. Wells Catering
Wells Catering Inc. is a caterer of corporate lunches and events. The following is Wells's sales forecast by quarter for the upcoming year.
| Wells Catering Inc. Forecasted Sales For the Year Ended December 31, 2020 | |||||
| Q1 | Q2 | Q3 | Q4 | Total | |
| Sales | $106,000 | $295,000 | $356,000 | $252,000 | $1,009,000 |
In addition, sales in Q3 and Q4 of 2019 totaled $133,000 and $208,000 respectively. According to the company's sales records, all revenue is invoiced (i.e. credit sales). Assume the following historical trends were noted by management regarding credit sales:
- 55% of credit customers pay during the quarter in which the sale took place
- 27% of credit customers pay in the quarter immediately following the quarter of sale
- 18% of credit customers pay in the second quarter following the quarter of sale
Do not enter dollar signs or commas in the input boxes. Prepare a schedule of cash receipts on a quarterly basis.
| Wells Catering Inc. Cash Receipts For the Year Ended December 31, 2020 | |||||
| Q1 | Q2 | Q3 | Q4 | Total | |
| Q3 2019 | $Answer | $Answer | |||
| Q4 2019 | $Answer | $Answer | $Answer | ||
| Q1 2020 | $Answer | $Answer | $Answer | $Answer | |
| Q2 2020 | $Answer | $Answer | $Answer | $Answer | |
| Q3 2020 | $Answer | $Answer | $Answer | ||
| Q4 2020 | $Answer | $Answer | |||
| Total Cash Receipts | $Answer | $Answer | $Answer | $Answer | $Answer |
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