Question

Climbers expects total sales of $701,500 for January and $346,000 for February. Assume that Climbers​'s sales are collected as​ follows: LOADING...(Click the icon to view the collection​ history.)

60% in the month of the sale

20% in the month after the sale

15% two months after the sale

5% never collected

November sales totaled $393,000​, and December sales were $399,000. Prepare a schedule of cash receipts from customers for January and February. Round answers to the nearest dollar.​ (If a box is not used in the table leave the box​ empty; do not enter a​ zero.)

Answer 1

Schedule of cash collections:
	November	December	January	February
Expected Sales	393,000	399,000	701,500	346,000
Collections:
60% in the month of sale			420,900	207,600
20% in month after			79,800	140,300
15% two months after sale			58,950	59,850
Expected Receipts			559,650	407,750

D 1 Schedule of cash collections: November December January 399000 February 346000 3 Expected Sales 4 Collections: 5 60% in the month of sale 393000 701500 =D3*60% =C3*20% =B3*15% |=SUM(D5:D7) =SUM(E5:E7) =E3*60% =D3*20% =C3*15% 6 20% in month after 7 15% two months after sale 8 Expected Receipts