1. For May and June, find:
   1. Total Cash Collections
   2. Ending balance of Accounts Receivable

PLEASE SHOW ALL WORK

Expected Cash Collections All sales are on account. 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. Start with April Accounts Receivable Beginning Balance - $30,000 Sales in April (previous slide) -20,000 - $10-$200,000 Find April credit sales collected $200,000*70% = $140,000 collected in April $200,000*25%-$50,000 in May Repeat process for May, June. 5% uncollectible is not in Accounts Receivable. All sales at Royal are made on account