Parker Company Has Forecast Its Sales as Follows Parker Has Experienced Collections of 55% During the Month of November

Parker Company has forecast its sales as follows:
$\begin{array}{ll}\text { November } & \$ 190,000 \text { (actual) } \\\text { December } & \$ 240,000 \text { (actual) } \\\text { January } & \$ 280,000 \\\text { February } & \$ 300,000 \\\text { March } & \$ 350,000 \\\text { April } & \$ 320,000\end{array}$
Parker has experienced collections of 55% during the month of sale, 38% the month after the sale, and 7% the second month after the sale.
Required:
a. Prepare a schedule of cash receipts for the 4-month period January - April.
b. What will the Accounts Receivable balance be on April 30?

Correct Answer:

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a. b.March: $350,000 × 0.07 =...

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