Question: Prepare a schedule of cash receipts for my business covering the fourth quarter (October through December).
Timber's Lodge shop has forecast credit sales for the 4th quarter:
September (actual sales)---- $50,000
Fourth quarter
October $40,000
November $35,000
December $60,000
Experience has shown that 25% of sales are collected in the month of sales. 70% in the following month and 5 percent are never collected.