a) Prepare a schedule of cash receipts for the months of October, November & December based of the following information:
Total sales September (actual) $185,000
October (estimated) $155,000
November (estimated) $145,000
December (estimated) $165,000
Eighty five percent of sales are on credit. Two percent of credit sales are never collected; thirty percent of credit sales are paid for in the month of sale and the remaining credit sales are collected in the following month.
b) Calculate balance in its accounts receivables end of December excluding bad debts.
c) Calculate total estimated bad debt for the months of October thru December.