Watt's Lighting Stores made the following sales projection for the next six months. All sales are credit sales.
|
| March |
$54,000 |
|
June |
$58,000 |
| April |
60,000 |
|
July |
66,000 |
| May |
49,000 |
|
August |
68,000 |
|
Sales in January and February were $57,000 and $56,000, respectively. Experience has shown that of total sales, 5 percent are uncollectible, 40 percent are collected in the month of sale, 50 percent are collected in the following month, and 5 percent are collected two months after sale.
Prepare a monthly cash receipts schedule for the firm for March through August.