The following is the sales budget for the Smithe and Wreston Company for the first quarter of 20X1
January February March
Sales Budget $90,000 $100,000 $120,000
The aging of credit sales is
30% collected in the month of sale
40% collected in the month after sale
The accounts receivable balance at the end of the previous quarter is $36,000; $30,000 0f that amount is uncollected December sales.
a) Compute the sales for December
b) Compute the cash collections from sales for each month from January through March
