Response to the following problem:
Office Warehouse Supplies Inc. has "cash and carry" customers and credit customers. Office Warehouse estimates that 40% of monthly sales are to cash customers, while the remaining sales are to credit customers. Of the credit customers, 30% pay their accounts in the month of sale, while the remaining 70% pay their accounts in the month following the month of sale. Projected sales for the first three months of 2008 are as follows:
January ....... $220,000
February ....... 275,000
March .......... 260,000
The Accounts Receivable balance on December 31, 2007, was $180,000.
Prepare a schedule of cash collections from sales for January, February, and March.