J. Lo’s Clothiers has forecast credit sales for the fourth quarter of the year as:
September (actual) $ 74,000 Fourth Quarter
October $ 64,000
November 59,000
December 84,000
Experience has shown that 40 percent of sales are collected in the month of sale, 50 percent in the following month, and 10 percent are never collected. Prepare a schedule of cash receipts for J. Lo’s Clothiers covering the fourth quarter (October through December).