Find:

a. total cash collections fort may and june

b. ending balance of accounts receivable

Royal Company is preparing budgets for the quarter ending June 30. Budgeted sales for the next five months are: The selling price is $10 per unit. Expected Cash Collections - All sales are on account (hits accounts receivable first). - Royal's cash collection pattern is: 70% collected in the month of sale, 25% collected in the month following sale, 5% uncollectible. - The March 31 accounts receivable balance of $30,000 will be collected in full. tart with April Accounts Receivable Beg Balance =$30,000 (collected in Apr ales in April (previous slide) =20,000$10=$200,000 ind April credit sales collected =$200,00070%=$140,000 collected in Apr $200,00025%=$50,000 in May epeat process for May, June. 5% uncollectible is not in Accounts Receivable