Question

Martin Company projects the following sales for the first three months of the year: $14,300 in January: $11,300 in February; and $15,800 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 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 Requirement 1. Prepare a schedule of cash receipts for Marlin 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 Total JanuaryFebruary March Requirements Total sales January February MarchT Total Cash Receipts from Customers: 1. Prepare a schedule of cash receipts for Marlin for January, February, and March. What is the balance in Accounts Receivable on March 31? Receivable balance, January 1 2. Prepare a revised schedule of cash receipts if receipts from sales on account are 60% in the month of the sale, 30% in the month following the sale, and 10% in the second month following the sale. What is the balance in Accounts Receivable on March 31? sales it sales, collection of January sales in January it sales, collection of January sales in February sales sales, collection of February sales in February sales, collection of February sales in March Print Done March Cash sales March- Credit sales, collection of March sales in March Total cash receipts from customers

Answer 1

1.

Schedule of Cash Receipts
	January	February	March	Total
Total Sales	14300	11300	15800	41400
	January	February	March	Total
Cash Receipts from Customers:
Accounts Receivable balance, January 1	0
January--Cash sales ( 14300 x 80%)	11440
January - Credit sales, collection of January sales in January (14300x20%)x50%	1430
January - Credit sales, collection of January sales in February (14300x20%)x50%		1430
February--Cash sales (11300 x 80%)		9040
February - Credit sales, collection of February sales in February (11300 x 20%)x50%		1130
February - Credit sales, collection of February sales in March (11300 x 20%)x50%			1130
March--Cash sales (15800 x 80%)			12640
March - Credit sales, collection of March sales in March (15800 x 20%)x50%			1580
Total Cash receipts from customers	12870	11600	15350	39820

2.

Revised Schedule of Cash Receipts
	January	February	March	Total
Total Sales	14300	11300	15800	41400
	January	February	March	Total
Cash Receipts from Customers:
Accounts Receivable balance, January 1	0
January--Cash sales ( 14300 x 80%)	11440
January - Credit sales, collection of January sales in January (14300x20%) x 60%	1716
January - Credit sales, collection of January sales in February (14300x20%) x 30%		858
January - Credit sales, collection of January sales in March (14300x20%) x 10%			286
February--Cash sales (11300 x 80%)		9040
February - Credit sales, collection of February sales in February (11300x20%) x 60%		1356
February - Credit sales, collection of February sales in March (11300x20%) x 30%			678
March--Cash sales (15800 x 80%)			12640
March - Credit sales, collection of March sales in March (15800x20%) x 60%			1896
Total Cash receipts from customers	13156	11254	15500	39910