BMT Corporation has predict credit sales for first quarter of year as:
December (actual) $150,000
January (estimate) 90,000
February (estimate) 75,000
March (estimate) 100,000
Experience has illustrated that 30% of sales receipts are collected in month of sale, 65% in following month, and 5% are never collected.
a) Create the schedule of cash receipts for BMT Corporation covering first quarter (January through March). For each of those 3 months, compute amount of cash company expects to gather from customers.