Question - Calista Gardens has gathered the following information regarding their cash collections of sales:
80% of the sales are collected in cash in the month of the sale.
20% are collected in the first month after the sale.
Accounts receivable at the end of 2014 was $10,000.
Sales for the first 3 months of 2015 are as follows:
January 35,000
February 25,000
March 50,000
Total 110,000
Prepare a monthly schedule of cash collections for Calista Gardens for January, February and March for the first quarter of 2015.