USA Apparel has predict credit sales for fourth quarter of the year as:
September (actual) $50,000
October (estimate) 40,000
November (estimate) 35,000
December (estimate) 60,000
Experience has illustrated that 20% of sales receipts are collected in month of sale, 70% in given month, and 10% are never collected.
Create the schedule of cash receipts for USA Apparel covering fourth quarter (October through December). For each of three months, compute amount of cash company expects to collect from customers.