Problem
Preparing Schedule of Cash Receipts
Getty Company expects sales for the first three months of next year to be $180,000, $265,000 and $305,000, respectively. Getty expects 20 percent of its sales to be cash and the remainder to be credit sales. The credit sales will be collected as follows: 10 percent in the month of the sale and 90 percent in the following month.
Compute a schedule of Getty's cash receipts for the months of February and March.