Rick Moreno owns The Steak Place in Orlando, Florida. The Steak Place is an affordable restaurant near International Drive—a tourist mecca. Rick accepts cash and checks. Checks are deposited immediately. The bank charges $0.50 per check; the amount per check averages

$75. “Bad” checks that Rick cannot collect make up 2 percent of check revenue.

During a typical month, The Steak Place has sales of $75,000. About 75 percent are cash sales. Estimated sales for the next three months are as follows:

Required:
Prepare a schedule of cash receipts for May and June.

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April $60,000 May 75,000 June 80,000