Question

Maynard Company projects the following sales for the first three months of the year: $15800 in January; $15,900 in February; $11,100 in March. The company expects 60% of the sales to be cash and the remainder on account. Sales on account are collected 50% in the month of the sale and 50% in the following month. The Accounts Receivable account has a zero balance on January 1. Round to the nearest dollar.

Requirements:

1.) Prepare a schedule of cash receipts for Maynard for January, February, and March. What is the balance in Accounts Receivable on March 31?

2.) Prepare a revised schedule of cash receipts if receipts from sales on account are 70% in the month of the sale, 10% in the month following the sale, and 20% in the second month following the sale. What is the balance in Accounts Receivable on March 31?

Requirement 1. Prepare a schedule of cash receipts for

Maynard

for

January?,

February?,

and

March.

What is the balance in Accounts Receivable on

MarchMarch

31??

?(Leave unused and zero balance account cells? blank, do not enter? "0".)

Cash Receipts from Customers
		January	February	March	Total
Total sales		15800	15900	11100	42800
		January	February	March	Total
Cash Receipts from Customers:
Accounts Receivable balance, January 1
January—Cash sales
January—Credit sales, collection of January sales in January
January—Credit sales, collection of January sales in February
February—Cash sales
February—Credit sales, collection of February sales in February
February—Credit sales, collection of February sales in March
March—Cash sales
March—Credit sales, collection of March sales in March
Total cash receipts from customers
Accounts Receivable balance, March 31:
March—Credit sales, collection of March sales in April

Answer 1

	January	February	March	Total
Total sales	15800	15900	11100	42800
	January	February	March	Total
Cash Receipts from Customers:
Accounts Receivable balance, January 1
January—Cash sales 15800*.60	9480
January—Credit sales, collection of January sales in January 15800*.40*.50	3160
January—Credit sales, collection of January sales in February 15800*.40*.50		3160
February—Cash sales 15900*.60		9540
February—Credit sales, collection of February sales in February 15900*.40*.50		3180
February—Credit sales, collection of February sales in March 15900*.40*.50			3180
March—Cash sales 10000*.60			6660
March—Credit sales, collection of March sales in March 11000*.40*.50			2220
Total cash receipts from customers	12640	15880	12060
Accounts Receivable balance, March 31:
March—Credit sales, collection of March sales in April 11000*.40*.50			2220