Managerial Accounting: 7-31 A Kyoto clothing wholesaler was preparing its sales budget

Managerial Accounting

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.
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