Exercise # 2

Exercise 2) Accountics Corp. expects service revenue in the next 6 months as follows: May June July $761,000 $835,000 $820,000 August$915,000 September $710,000 October $888,000 Prior experience has shown that the following collections are made: 26 percent of a month's revenue is collected in the month the service is performed 23.5 percent in the month following the service being performed 18.8 percent in the second month following the service being performed 11.4 percent in the third month following the service being performed 7.9 percent in the fourth month following the service being performed Remainder is collected in the fifth month following the service being performed . . March and April service revenues were $675,000 and $690,000 respectively. Past experience shows that 3.3 percent of revenues are never collected (i.e., bad debts). Required: Estimate budgeted cash receipts (service revenue collected) for August, September. and October. Exercise 3) Complete the Excel Assignment given on a separate handout and e-mail it to swbenner@eiu.edu by 11:59 p.m. Monday. November 5. 2018 EXC