Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bounce Athletics Ltd, which develops and runs athletics training programs for primary schools, has budgeted revenue for the first 6 months of 2020 as follows:

Bounce Athletics Ltd, which develops and runs athletics training programs for primary schools, has budgeted revenue for the first 6 months of 2020 as follows:

MonthBudgeted revenueJanuary

$9,000

February43,000March69,000April22,000May69,000June52,000

All revenues are provided on account and Bounce Athletics Ltd posts out the account statements on the last day of each month for that month's services. Schools are given 14 days to pay and 70% of schools pay within the month after the invoices are posted. The other 30% usually pay the following month. In December 2019 Bounce Athletics Ltd provided no training programs as the schools were preparing for the end-of-year break. The company also made sure that all outstanding balances owed by schools from November were paid before the end of December 2019.

Prepare a schedule of estimated cash collections from revenue for the first 6 months of 2020 for Bounce Athletics Ltd.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Statement Analysis

Authors: K. R. Subramanyam, John J. Wild

10th edition

73379433, 73379432, 978-0073379432

More Books

Students also viewed these Accounting questions

Question

The relevance of the information to the interpreter

Answered: 1 week ago

Question

The background knowledge of the interpreter

Answered: 1 week ago