Question

Chapter 22-3

3 of 3 (2 complete Score: 0 of 24 pts E22-26 (similar to) HW Score: 33.33%, 12 of 36 pt Question Help Armand Company projects the following sales for the first three months of the year $15.500 in January $12 300 in February, and $12.900 in March. The company expects 80% of the sales to be cash and the remainder on account Sales on account are collected 50% in the men of the sale and 50 in the following on the Accounts Receivable account has a zero balance on January 1 Round to the nearest dollar Read the LOA DS Requirement 1. Prepare a schedule of cash receipts for Armand for January February and March What is the balance in Accounts Receivable on March 12 Leve used and zero balance Councils blank, do not enter ) Cash Receipts from Customers February March Total January February March T otal Cash Receipts from Customers Janetton any manual Jam i at des lection et lancary sales in For Enter any number in the edited and then click Check Answer CRAWE

Answer 1

1. Cash Receipts from Customers:

Particulars	January	February	March
Total Sales during the months	15800	12300	12900
Cash sales respective months	12640	9840	10320
Credit sales in respective months	3160	2460	2580
Credit sales collections of January	1580	1580	0
Credit sales collections of February	0	1230	1230
Credit sales collections of March	0	0	1290
Cash Receipts in respective months	14220	11070	11610

   Account receivable on March 31st is $1290 that is 50 % of March month account sales (2580) are received in following month.

2. Cash receipts from customers(Revised Schedule):

Particulars	January	February	March
Total Sales During the month	15800	12300	12900
Sales collections of January	11080	3950	790
Sales collections of February	0	8610	3075
Sales collections of March	0	0	9030
Cash Receipts in Respective Months	11080	12560	12895

Account Receivable on 31st March 2019:

February month sales received in the month of April is$ 615 that is cash receipts 5% in second month of following sales and March month sales received in the months of April and May is $3225 and $645 respectively that is cash receipts of 25% in the month of following and 5% in the second month of following sale.

Therefore, Accounts receivable on March 2019 is $4485.