Door & Window Co. was organized on August 1 of the current year. Projected sales for the next three months are as follows:
|
August |
$120,000 |
|
September |
200,000 |
|
October |
230,000 |
The company expects to sell 40% of its merchandise for cash. Of the sales on account, 25% are expected to be collected in the month of the sale and the remainder in the following month.
Prepare a schedule indicating total cash collections for August, September, and October.