Preparing a Schedule of Cash Collections on Accounts Receivable

Kailua and Company is a legal services firm. All sales of legal services are billed to the client (there are no cash sales). Kailua expects that, on average, 20% will be paid in the month of billing, 50% will be paid in the month following billing, and 25% will be paid in the second month following billing. For the next 5 months, the following sales billings are expected:

May	$84,000
June	100,800
July	77,000
August	86,900
September	92,000

Required:

Prepare a schedule showing the cash expected in payments on accounts receivable in August and in September. If an amount box does not require an entry, leave it blank or enter "0". Be sure to enter percentages as whole numbers.

Kailua and Company Schedule
				August		September
June:
$fill in the blank fill in the blank %				$fill in the blank		$fill in the blank
July:
$fill in the blank fill in the blank %				fill in the blank
$fill in the blank fill in the blank %						fill in the blank
August:
$fill in the blank fill in the blank 1%				fill in the blank 13
$fill in the blank fill in the blank %						fill in the blank
September:
$fill in the blank fill in the blank %				fill in the blank		fill in the blank
Total cash receipts				$fill in the blank		$fill in the blank