Question

22-20 S al 10) Carmen Company projects the following sales for the first three months of the year $12.600 in January: $14.600 in February, and $16,300 in March. The company expects 70% 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. Read the requirements 11.410 Requirement 1. Prepare a schedule of cash receipts for Carmen for January, February, and March What is the balance in Accounts Receivable on March 31? (Leave unused and zero balance account cells blank, do not enter"0.) Cash Receipts from Customers January February March Total Total sales 12,600 14600 16300 43500 January February March Total Cash Receipts from Customers: Accounts Receivable balance, January 1 January-Cash sales 10.220 January--Credit sales, collection of January sales in January January--Credit sales, collection of January sales in February February-Cash sales February-Credit sales, collection of February sales in February February--Credit sales, collection of February sales in March March-Cash sales March-Credit sales, collection of March sales in March Total cash receipts from customers Accounts Receivable balance, March 31: March-Credit sales, collection of March sales in April Enter any number in the edit fields and then click Check Answer 4 part remaining Clear All Check Answer Tvne here to cearch

Answer 1

Cash receipts from customers

	January	February	March	Total
Total sales	12,600	14,600	16,300
	January	February	March	Total
Cash receipts from customers:
Accounts receivable balance, January 1	0	0	0	0
January - cash sales	12,600 x 70% = 8,820	0	0	8,820
January - Credit sales, collection of January sales in January	3,780 x 50% = 1,890	0	0	1,890
January - Credit sales, collection of January sales in February	0	1,890	0	1,890
February - cash sales	0	14,600 x 70% = 10,220	0	10,220
February - Credit sales, collection of February sales in February	0	4,380 x 50% = 2,190	0	2,190
February - Credit sales, collection of February sales in March	0	0	2,190	2,190
March - cash sales	0	0	16,300 x 70% = 11,410	11,410
March - Credit sales, collection of March sales in March	0	0	4,890 x 50% = 2,445	2,445
Total cash receipts from customers	$10,710	$14,300	$16,045	$41,055

Credit sales in January = 12,600 x 30%

= $3,780

Credit sales in February = 14,600 x 30%

= $4,380

Credit sales in March = 16,300 x 30%

= $4,890

Accounts receivable balance, March 31

March - Credit sales, collection of March sales in April = 4,890 x 50%

= $2,445

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