Question

Carmen Company projects the following sales for the first three months of the year: $13,500 in January; $10,200 in February; and $10,500 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 2. Prepare a revised schedule of cash receipts if receipts from sales on account are 60% in the month of the sale, 35% in the month following the sale, and 5% in the second month following the sale. 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 January February March Total Total sales January February March Total Cash Receipts from Customers: Accounts Receivable balance, January 1 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 March—Cash sales March—Credit sales, collection of March sales in March Total cash receipts from customers Accounts Receivable balance, March 31: Credit sales, collection in April and May

Carmen Company projects the following sales for the first three months of the year: $13,500 in January; $10,200 in February; and $10,500 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 2. Prepare a revised schedule of cash receipts if receipts from sales on account are 60% in the month of the sale, 35% in the month following the sale, and 5% in the second month following the sale. 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
January February March Total
Total sales
January February March Total
Cash Receipts from Customers:
Accounts Receivable balance, January 1
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
March—Cash sales
March—Credit sales, collection of March sales in March
Total cash receipts from customers
Accounts Receivable balance, March 31:
Credit sales, collection in April and May

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