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Schedule of Cash Collection

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Victoria's Apparel has forecast credit sales for the 4th Quarter as:
September (actual) $50,000
4th Quarter
October (forecast) 40,000
November (forecast) 35,000
December (forecast) 60,000

Experience has shown that 20% of credit sales are collected in the month of the sale, 70% is collected the following month, and 10% are never collected. Prepare a schedule of cash receipts for Victoria's Apparel for the 4th quarter.

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Solution Summary

The solution explains how to prepare a schedule of cash collections for Victoria Apparel.

Solution Preview

Please see the attached file

Month Sept Oct Nov Dec
Sales 50,000 40,000 35,000 60,000

In a schedule of cash receipts we show the ...

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