Question

Avery Company projects the following sales for the first three months of the year: $15,800 in January; $10,100 in February; and $10,400 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.

Part 2:

Answer 1

	January	February	March	Total
Total sales	15800	10100	10400	36300
	January	February	March	Total
Cash receipts from customer:
Accounts receivable balance, January 1
January- cash sales	9480
January- credit sales, collection of january sales in January	4424
January-credit sales,collection of january sales in February		1264
January-credit sales, collection of January sales in march			632
February-cash sales		6060
February-credit sales, collection of February sales in February		2828
February-credit sales,collection of February sales in march			808
March-cash sales			6240
March-credit sales, collection of march sales in march			2912
Total cash receipts from customer	13904	10152	10592	34648

Accounts receivable balance , march 31

Credit sales , collection in April,may=1248