Ellis Sport Shop projects the following sales:
Ninety percent of Ellis' sales are on credit with 60 percent of receivables collected in the month after the sale and the rest of receivables collected in the second month after the sale. February sales were $60,000 and March sales were $70,000. In the past Ellis' bad debt percentage has been 0 and is expected to continue.
(a) Prepare a monthly schedule of cash receipts for April-June.
(b) What is the balance of Receivables at the end of June.
Feb Mar April May June
60,000 70,000 75,000 95,000 110,000
60% 42,000 45,000 57,000
40%2nd 24,000
I figure my cash receipts to be $27,000