Problem:
The following is the sales budget for the Smithe and Wreston Company for the first quarter of 20X1.
The aging of credit sales is:
30 percent collected in the month of sale
40 percent collected in the month after sale
The accounts receivable balance at the end of the previous quarter is $36,000; $30,000 of that amount is uncollected December sales.
Q1. Compute the sales for December.
Q2. Compute the cash collections from sales for each month from January through March.