Question

Help with requirement 2 please?

Graham Company projects the following sales for the first three months of the​ year: $ 10,800 in January​; $ 11,600 in February​; and $ 16,300 in March. The company expects 60​% 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.

Cash Receipts from Customers January February March Total Total sales 10,800||| 11,600 16,300 January | February || March 38,700 Total | Cash Receipts from Customers: i Requirements ol 6480 1080 1080 Accounts Receivable balance, January 11 January—Cash sales January—Credit sales, collection of January sales in January January—Credit sales, collection of January sales in February January—Credit sales, collection of January sales in March February—Cash sales February—Credit sales, collection of February sales in February February—Credit sales, collection of February sales in March 1. Prepare a schedule of cash receipts for Graham for January, February, and March. What is the balance in Accounts Receivable on March 31? Prepare a revised schedule of cash receipts if receipts from sales on account are 60% in the month of the sale, 25% in the month following the sale, and 15% in the second month following the sale. What is the balance in Accounts Receivable on March 31? 696 6960 2784 1392 Print Print Done Done March—Cash sales March—Credit sales, collection of March sales in March 7560 9744 Total cash receipts from customers Accounts Receivable balance, March 31: Credit sales, collection in April and May

Answer 1

Requirement 2.

	January	February	March	Total
Total Sales	10800	11600	16300	38700
	January	February	March	Total
Cash receipts from customers:
Account receivable balance, January 1
January-Cash sales	6480
January-Credit sale, collection of Jan sales in Jan	2592
January-Credit sale, collection of Jan sales in Feb		1080
January-Credit sale, collection of Jan sales in Mar			648
February-Cash sales		6960
February-Credit sale, collection of Feb sales in Feb		2784
February-Credit sale, collection of Feb sales in Mar			1160
March-Cash sales			9780
March-Credit sale, collection of Mar sales in Mar			3912
Total cash receipts from customers	9072	10824	15500	35396
Accounts receivable balance, March 31:
Credit sales, collection in April and May	3304