[sharpie77]

Budgeted sales for the first quarter of the year for the Delta Company are as follows:
Budgeted Sales:
January $400,000
February $200,000
March $600,000

The Company normally collects 60% in the month of sale and 30% in the month following the sale. Ten percent of all sales are uncollectible and are written off in the following month.

The balance in accounts receivable at January 1 was $100,000, which represents 40% of December sales.

Prepare a schedule of cash collections for the first three months of the year.

[morgaine300]

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