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Watt’s Lighting Stores made the following sales projection for the next six months. All sales are...

Watt’s Lighting Stores made the following sales projection for the next six months. All sales are credit sales.

March $43,000 June $47,000
April 49,000 July 55,000
May 38,000 August 57,000


Sales in January and February were $46,000 and $45,000, respectively. Experience has shown that of total sales, 10 percent are uncollectible, 35 percent are collected in the month of sale, 45 percent are collected in the following month, and 10 percent are collected two months after sale.

a. Prepare a monthly cash receipts schedule for the firm for March through August.
  

January February March April May June July August
Credit Sales
In month of sale
One month after sale
Two months after sale
Total cash receipts
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