Managerial Accounting: 7-31 A Kyoto clothing wholesaler was preparing its sales budget
7-31 Sales Budget A Kyoto clothing wholesaler was preparing its sales budget for the first quarter of 2008. Forecast sales are (in thousands of yen) January ¥200,000 February ¥220,000 March ¥240,000 Sales are 20% cash and 80% on credit. Fifty percent of the credit accounts are collected in the month of sale, 40% in the month following the sale, and 10% in the following month. No uncollectible accounts are anticipated. Accounts receivable at the beginning of 2008 are ¥96 million (10% of November credit sales of ¥180 million and 50% of December credit sales of ¥156 million).
Prepare a schedule showing sales and cash collections for January, February, and March, 2008.