PREPARING AN ACCOUNTS RECEIVABLE AGING SCHEDULE Don Gaspar and Company is a legal services firm. All sales of legal services are billed to the client (there are no cash sales). Don Gaspar expects that, on average, 50 percent will be paid in the month of billing, 30 percent will be paid in the month following billing, and 15 percent will be paid in the second month following billing. For the next five months, the following sales billings are expected:

May $60,000 June 72,000 July 55,000 August 62,000 September 65,000 Required:

Prepare a schedule showing the cash expected in payments on accounts receivable in August and in September.

Cornerstone Exercise