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Simpson Glove Company has made the following sales projections for the next six months. All sales...

Simpson Glove Company has made the following sales projections for the next six months. All sales are credit sales.

  

March $52,000 June $58,000
April 61,000 July 69,000
May 43,000 August 73,000

  

Sales in January and February were $41,000 and $39,000, respectively. Experience has shown that of total sales receipts 10 percent are uncollectible, 35 percent are collected in the month of sale, 25 percent are collected in the following month, and 30 percent are collected two months after sale.

Prepare a monthly cash receipts schedule for the firm for March through August.

Simpson Glove Company
Cash Receipts Schedule
January February March April May June July August
Credit sales
In month of sale
One month after sale
Two months after sale
Total cash receipts

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