(collection fractions and receivables balance fractions) The deep river company collects 20% of its sales in the month of the sale, 50% in the month following the sale, 25% in the second month following sale, and 5% in the third month following sale.
a. Assume that collection proceed as predicted. Calculate the level of accounts receivable for January, February, and march from the sales information given.
B. Provide an aging schedule for accounts receivable outstanding at the end of march.
Month october novermber december january february march
sales 700 800 600 500 700 900