ACCOUNTS RECEIVABLE AGING SCHEDULE AND CASH BUDGET Kotari Inc. found that about 15 percent of its sales during the month were for cash.

Kotari has the following accounts receivable payment experience:

Percent paid in the month of sale 20 Percent paid in the month after the sale 70 Percent paid in the second month after the sale 8 Kotari’s anticipated sales for the next few months are as follows:

April $200,000 May 240,000 June 230,000 July 246,000 August 250,000 Required:

. Calculate credit sales for May, June, July, and August.

. Prepare a schedule of cash receipts for July and August.

Exercise