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".)

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

January

February

March

Total

Total sales

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

January—Credit sales, collection of January sales in March

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:

Credit sales, collection in April and May

Answer 1