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Wahoo was preparing a sales budget for the first quarter of 2016.
Forecast sales are as follows.
January: $203,000,
February: $227,000,
March: $248,000.
Sales are 40% cash and 60% on credit. 55% of the credit accounts are collected in the month of sale, 35% in the month following the sale, and 10% in the following month.
No uncollectible accounts are anticipated.
Accounts receivable at the beginning of 2016 are $82,950 (10% of November credit sales of $150,000 and 35% of December credit sales of $151,000).
Prepare a schedule showing sales and cash collections for January, February, and March, 2016.
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