David Campbell's is a men's clothing store in Mesa, Arizona. David Campbell's has its own house charge accounts and has found from past experience that 20% of its sales are for cash.

The remaining 80% are on credit. An aging schedule for accounts receivable reveals the fol¬

lowing pattern:

15% of credit sales are paid in the month of sale.

65% of credit sales are paid in the month following sale.

18% of credit sales are paid in the second month following sale.

2% of credit sales are never collected.

Credit sales that have not been paid until the second month following sale are considered overdue and are subject to a 2% late charge.

David Campbell's Men's Store has developed the following sales forecast:

Required:
Prepare a schedule of cash receipts for August and September.

Transcribed Image Text:

May $66,000 June 85,000 July 55,000 August 75,000 September 80,000