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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

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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