The following is the sales budget for Shleifer Inc. for the first quarter of 2016: Credit sales

Question:

The following is the sales budget for Shleifer Inc. for the first quarter of 2016:

Credit sales are collected as follows:

65 percent in the month of the sale.

20 percent in the month after the sale.

15 percent in the second month after the sale.

The accounts receivable balance at the end of the previous quarter was $106,800 ($76,300 of which was uncollected December sales).

a. Compute the sales for November.

b. Compute the sales for December.

c. Compute the cash collections from sales for each month from January through March.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...