Simpson Glove Company has made the following sales projections for the next six months. All sales are credit sales. March April May $40,000 June 49,000 July 31,000 August Sales Sales in January and February were $41,000 and $39,000, respectively. Experience has shown that of total sales receipts 5 percent are uncollectible, 50 percent are collected in the month of sale, 40 percent are collected in the following month, and 5 percent are collected two months after sale. Prepare a monthly cash receipts schedule for the firm for March through August. Simpson Glove Company Cash Receipts Schedule. February $46,000 57,000 61,000 Collections of current sales Collections of prior month's sales Collections of sales 2 months earlier Total cash receipts $ January 41000 $ March 39000 ✔ $ 40000 $ 20000 ✔ 2000 16000 10000 38000 April 49000 24500 1960 19600 $ 46550 10000 $ May 31000 15500 1240 12400 $ 29450 $ S June 46000 23000✔ 1840 18400 O 43700 Return to question July $ 57000 28500 2280 22800 O $ 54150 O

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.