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Armand Company projects the following sales for the first three months of the year: $10,600 in January; $12,300 in February; and $12,900 in March. The company expects 60% of the sales to be cash and the remainder on account. Sales on account are collected 50% in the month of the sale and 50% in the following month. The Accounts Receivable account has a zero balance on January 1. Round to the nearest dollar.

Requirement 1.

Prepare a schedule of cash receipts for Armand for January, February, and March.

What is the balance in Accounts Receivable on March 31?

(If a box is not used in the table leave it empty; do not enter a zero.)

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Cash Receipts from Customers
	January	February	March	Total
Total sales
		January	February	March	Total
Cash Receipts from Customers:
Accounts Receivable balance, January 1
January—Cash sales
January—Credit sales, collection of January sales in January
January—Credit sales, collection of January sales in February
February—Cash sales
February—Credit sales, collection of February sales in February
February—Credit sales, collection of February sales in March
March—Cash sales
March—Credit sales, collection of March sales in March
Total cash receipts from customers

Accounts Receivable balance, March 31:
March—Credit sales, collection of March sales in April

Requirement 2.

Prepare a revised schedule of cash receipts if receipts from sales on account are 60% in the month of the sale, 30% in the month following the sale, and 10% in the second month following the sale. What is the balance in Accounts Receivable on March 31?

(If a box is not used in the table leave it empty; do not enter a zero.)

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Cash Receipts from Customers
	January	February	March	Total
Total sales
		January	February	March	Total
Cash Receipts from Customers:
Accounts Receivable balance, January 1
January—Cash sales
January—Credit sales, collection of January sales in January
January—Credit sales, collection of January sales in February
January—Credit sales, collection of January sales in March
February—Cash sales
February—Credit sales, collection of February sales in February
February—Credit sales, collection of February sales in March
March—Cash sales
March—Credit sales, collection of March sales in March
Total cash receipts from customers

Accounts Receivable balance, March 31:
Credit sales, collection in April and May