Kendall Law Firm has found from past experience that 30 percent of its services are for cash. The remaining 70 percent are on credit. An aging schedule for accounts receivable reveals the following pattern:

e Ten percent of fees on credit are paid in the month service is rendered.

e Seventy percent of fees on credit are paid in the month following legal service.

e Seventeen percent of fees on credit are paid in the second month following the legal service.

e Three percent of fees on credit are never collected.

Fees (on credit) that have not been paid until the second month following performance of the legal service are considered overdue and are subject to a 2 percent late charge.

Kendall has developed the following forecast of fees:

May $228,000 June 255,000 July 204,000 August 240,000 September 300,000 Required:

Prepare a schedule of cash receipts for August and September. lp6