Complete the two following tables for Fresh Flowers Ltd to show estimated cash collections from debtors (accounts receivable) on the following assumptions: 70 per cent is collected in the month of the sale

Complete the two following tables for Fresh Flowers Ltd to show estimated cash collections from debtors (accounts receivable) on the following assumptions:

1. 70 per cent is collected in the month of the sale.
2. 20 percent is collected in the month following the sale.
3. 7 per cent is collected in the second month following the sale
4. 3 per cent is never collected

[Answer here]

Month

Estimated sales ($)

Estimated collections (month of sales)

$

Estimated collections (first month after sales)

$

Estimated collections (second month after sales)

$

January

5,000,000

February

5,200,000

March

5,100,000

April

530,000

May

5,300,000