Complete Question:
PA9.
LO 7.3 Fit band's estimated sales are:
                                                                     $
OCTOBER                                         131,982 
NOVEMBER                                         195,723 
DECEMBER                                         249,283 
JANUARY                                         124,298 
FEBRUARY                                         124,284 
MARCH                                                  124,373 
What are the balances in accounts receivable for January, February, and March if 65% of sales is collected in the month of sale, 25% is collected the month after the sale, and 10% is second month after the sale?
Answer:
                                                            JANUARY   FEBRUARY   MARCH
Amount received from November sales    19,572
Amount received from December sales    62,321        24,928  
Amount received from January sales        80,794        31,075       12,430
Amount received from November sales  <u>               </u>     <u>              </u>      <u> 31,071 </u>
TOTAL                                                     <u>$162,687 </u>    <u>$56,003</u>     <u>$43,501 </u>
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Explanation: 
The balances calculated are based on the following formula:
Amount received = Sales Figure of that month * Percentage
65% in the month of sale is received, 25% in the next month and the residual is received in the second month after sales
For the month of November:
65% of its total sales will be received in november, 25% in the next month(December) and the residual 10% in the second month after sale(January). Likewise for the month of January, we see in the computation that 65% of sales was received in the same month, 25% in the next month February and the residual 10% in the second after sale which is in March.