A merchandising company sells only one product. The company has prepared the following Sales Budget.
Of total sales 35% are made in cash. Of sales made on credit 60% are paid in the first month in time to take a 4% discount 20% are paid the
following month and 15% are paid two months after the sale. In January the company collected $78581 from sales made on credit in November.
Prepare a Cash Collections Schedule.
Prepare an Accounts Receivable Schedule.
Can anybody tell me how to calculate the beginning A/R for Jan (the first month in the AP schedule). Thanks a lot