Question

Logitech Companv is a large firm in Hong Kong selling large sized remote control flving drones with HD camera that can take pictures and videos from the sky for one hour with its lithium battery. Financial figures concerning this company are as follow: * Sales are budgeted at $400,000 for November 2017, $300,000 for December 2017, and $350,000 for January 2018. Collections are expected to be 80% in the month of sale, 18% in the month following the sale, and 2% uncollectible. Accounts receivable as at October 31 2017 was $85,000 (net of allowance for uncollectible accounts). Required: Prepare a Schedule of Expected Cash Collection (at least 3 column figures) with headings below for November and December. Item Nov Dec Jan

Answer 1

Expected cash collection

Item	Nov	Dec	Jan
Account receivable	85000
November sales	320000	72000
December sales		240000	54000
Jan Sales			280000
Total expected cash collection	405000	312000	334000