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Erewon Inc. sells all of its product on account. Erewon has the following accounts receivable payment experience: Percent paid in the month of sale
Erewon Inc. sells all of its product on account. Erewon has the following accounts receivable payment experience: Percent paid in the month of sale Percent paid in the month after the sale Percent paid in the second month after the sale 30 50 18 To encourage payment in the month of sale, Erewon gives a 2% cash discount. The company's anticipated sales for the next few months are as follows: April May June $209,000 272,800 286,000 July August 264,000 330,000 Required: 1. Prepare a schedule of cash receipts for July. Be sure to enter percentages as whole numbers. Erewon Inc. Schedule of Cash Receipts Payments on account: From May credit sales: x From June credit sales: For July %
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