Question
Portia is a retailer of scrapbooking products. The sales forecast for the coming months is: Revenues April (actual) $ 261,000 May (actual) $ 286,000 June
Portia is a retailer of scrapbooking products. The sales forecast for the coming months is:
| Revenues | ||
| April (actual) | $ | 261,000 |
| May (actual) | $ | 286,000 |
| June | $ | 311,000 |
| July | $ | 361,000 |
| August | $ | 361,000 |
Portias sales are all credit. The collection pattern is 60% in the month of sale, 35% the following month and the remainder in the second month following the sale. Accounts receivable on April 1 were $128,000. a. Prepare a cash receipts schedule for the period June through August (by month).
b. What will the Accounts Receivable balance be on August 31?
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Contemporary Auditing Real Issues And Cases
Authors: Michael C. Knapp
8th Edition
0538466790, 9780538466790
