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Wells Company reports the following sales forecast: September, $46,000; October, $64,000; and November, $73,000. All sales...

Wells Company reports the following sales forecast: September, $46,000; October, $64,000; and November, $73,000. All sales are on account. Collections of credit sales are received as follows: 25% in the month of sale, 60% in the first month after sale, and 10% in the second month after sale. 5% of all credit sales are written off as uncollectible. Prepare a schedule of cash receipts for November.

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Answer #1
Schedule of expected cash collections
November
Collections from accounts receivables:
September ($46000 X 10%) $             4,600
October ($64000 X 60%) $           38,400
November ($73000 X 25%) $           18,250
Total cash receipts $           61,250
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