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10. Preparing a schedule of Cash Collections on Accounts Kailua and Company is a legal services firm. All sales of legal services are billed
10. Preparing a schedule of Cash Collections on Accounts Kailua and Company is a legal services firm. All sales of legal services are billed to the client (there are no cash sales). Kailua expects that, on average, 20% will be paid in the month of billing, 50% will be paid in the month following billing, and 25% will be paid in the second month following billing. Fo the next five months, the following sales billings are expected: May June July PS4,000 100,800 77,000 $6,800 August September 91,000 Required: Prepare a schedule showing the cash expected in payments on accounts receivable in August and in September.
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