Schedule of Cash Collections for March through May:
March | April | May | |
Credit sales | $74000 | $92000 | $76000 |
Cash collections | |||
Cash sales | $18000 | $24000 | $22000 |
Collection of january credit sales(68000×10%) | $6800 | - | - |
Collection of february credit sales(80000×45%;80000×10%) | $36000 | $8000 | - |
Collection of march credit sales(74000×40%;74000×45%;74000×10%) | $29600 | $33300 | $7400 |
Collection of April credit sales(92000×40%;92000×45%) | - | $36800 | $41400 |
Collection of May Credit sales(76000×40%) | - | - | $30400 |
TOTAL CASH COLLECTIONS | $90400 | $102100 | $101200 |
*Cash has been collected as follows
- 40% of credit sales in the month of sale.
- 45% of credit sales in the following month of sale.
- 10% of credit sales after two months following the sale.
_____×_____
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