SCOW Company has budgeted sales revenues as follows:
Months
Budgeted Sales Revenues
January February March April May June
$55,000 75,000 90,000 60,000 45,000 35,000
Past experience has indicated that 80% of sales each month are on credit and that collection of credit sales occur as follows: 60% in the month of sale, 30% in the month following the sale, and 5% in the second month following the sale. The other 5% is uncollectible.
Requirements
Prepare a schedule which shows expected cash receipts from sales for the months of April, May, and June?