Calculate balance of accounts receivables for each month

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Reference no: EM131488809

Question: (Pro forma accounts receivable balance calculation) Door Company sells products in cash and in credit as follows: cash sales are 60 percent of total sales, and credit sales are 40 percent. 10 percent of the credit sales are collected in the month of the sale, 70 percent in the following month, and 20 percent two months after the sale. The total projected sales for January-April, 2017, are projected as follows:

Based on these information calculate

a. Balance of accounts receivables for each month

b. Cash collections for each month. Balance of cash at the end of December 2016 is $300,000 and accounts receivables are $200,000. Assume that all accounts receivables from December.

Reference no: EM131488809

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