Question
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
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 | 86,500 |
September | 91,000 |
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) | ||||
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) % | (fill in the blank) | |||||
$(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) |
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