Trapp Co.was organized on August 1 of the current year. Projected sales for the next three months are as follows:
|
August
|
$100,000
|
|
September
|
185,000
|
|
October
|
225,000
|
The company expects to sell 40% of its merchandise for cash. Of the sales on account, one third are expected to be collected in the month of the sale and the remainder in the following month.
Prepare a schedule indicating cash collections of accounts receivable for August, September, and October.