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Cash flow schedule for collection of Accounts Receivable

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Ninety percent of US sales are on credit with 60 percent of receivables collected in the month after the sales and the rest of receivables are collected in the second month after the sales. February sales were $60,000 and March sales were $70,000. IN THE PAST US BAD DEBT PERCENTAGE HAS BEEN ZERO AND IS EXPECTED TO CONTINUE AT THAT LEVEL. If April was $75,000 May was $95000 and June was 110,000 what would a monthly schedule for cash receipts for April through June and what is the balance of receivable at the end of June.

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Solution Summary

The solution presents a small table to demonstrate the expected cash flows for accounts receivable based on a company's past history of collections.

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Cash flow schedule for collection of Accounts Receivable

Total AR April May June Uncollected Amt
March ...

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