1) Rushmore Kitchen Supply has forecast credit sales for the fourth quarter of the year as:
March(actual) $75,000
Fourth Quarter - projected
April $80,000
May $70,000
June $75,000
Experience has shown that 30 percent of sales are collected in the month of sale, 60 percent in the following month, and 10 percent are never collected.
Required:
Prepare a schedule of cash receipts for Rushmore Kitchen Supply for the first quarter.
Here is my work, does it look like I am on the right track????????
... April May June
Sales... 80,000 70,000 75,000
Collections, 30% in current month... 24,000 21,000 22,500
Collections, 60% in the following month... 0 48,000 42,000
Collections, 10% never collected... 2,400 6,900 6,450
Total Cash receipts... 21,600 62,100 58,050

Prepare a schedule of cash receipts for Rushmore Kitchen Supply for the first quarter.
Here is my work, does it look like I am on the right track??

No , you are not on the right track!
What do you mean the first quarter?
You mean the fourth quarter, of course.

Why did you leave out the month of March?

Collections never collected have NO place
In the calculations .

.. . April May June
Sales.. . 80,000 70,000 75,000
Collections, 30% in current month... 24,000 21,000 22,500
Collections, 60% in the following month... 0 48,000 42,000
Collections, 10% never collected... 2,400 6,900 6,450
Total Cash receipts... 21,600 62,100 58,050

Yes, you are somewhat on the right track, you just don't have the entire thing correct. I also assume that either the "fourth" or "first" quarter was just a typo and not a major contastrophy.

Make yourself a column in front of your three months and stick March in there. March will not actually go into the final collection budget as a column, but put it there on your scrap paper so that you can deal with those numbers. If 60% of sales is collected in the next month, what is going to be collected in April besides just 30% of April's sales? 60% of the month before it -- i.e. March.
If you add a column for March and figure it out too, you will see that 60% of it will end up in April instead of that zero.

As for the part not collected, if it's not collected, it's not going to be included in a budget for "collections." You are trying to figure out what is going to be collected, not what's not going to be collected.

Also, it doesn't work to subtract out the non-collected part. If 24,000 of April's sales are collected in April, how does not collecting 10% reduce the 30% that you've collected? It doesn't. You have 30% (24,000) collected in April, 60% (48,000) collected in May -- and that only adds up to the 90% total that will be collected. The other 10% just isn't there because it will never be collected.

As a more simple, every day example of this concept: if you have $1.00 and you give me 90 cents of it, but do not give me 10 cents of it, the way you're doing it, you'd subtract the 10 cents you didn't give me from the 90 cents you did give me, which actually means you only gave me 80 cents. See what happens when you subtract it out?