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Question - Simpson Glove Company has made the following sales projections for the next six months. All sales are credit sales.
March
$41,000
June
$47,000
April
50,000
July
58,000
May
32,000
August
62,000
Sales in January and February were $41,000 and $39,000, respectively. Experience has shown that of total sales receipts 10 percent are uncollectible, 40 percent are collected in the month of sale, 30 percent are collected in the following month, and 20 percent are collected two months after sale.
Prepare a monthly cash receipts schedule for the firm for March through August.
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