Xenos Company Has the Following Sales Projections for the Coming

Xenos Company has the following sales projections for the coming months:
$$\begin{array} { l c } \text { Month } & \text { Sales } \\\text { January } & \$ 60,000 \\\text { February } & 68,000 \\\text { March } & 75,000 \\\text { April } & 80,000 \\\text { May } & 95,000 \\\text { June } & 90,000\end{array}$$
Xenos collects 20% of its sales in the month of sale, 45% in the month following the sale, and 35% in the second month following the sale.
Required:
a. Prepare a schedule of cash receipts for the three months April through June.
b. What would be the accounts receivable balance on June 30?

Correct Answer:

Verified

a. b.May: $95,000 × 0.35 = $3...

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