Question
Preparing a Schedule of Cash Collections on Accounts Receivable Weiland and Company is a medical billing services firm. All sales of billing services are billed
Preparing a Schedule of Cash Collections on Accounts Receivable
Weiland and Company is a medical billing services firm. All sales of billing services are billed to the client (there are no cash sales). Weiland expects that, on average, 15% will be paid in the month of billing, 40% will be paid in the month following billing, and 42% will be paid in the second month following billing. For the next 5 months, the following sales billings are expected:
May | $184,000 |
June | 192,000 |
July | 207,000 |
August | 175,000 |
September | 164,000 |
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, enter "0".
Schedule for Cash Collections on Accounts ReceivableAugustSeptember
Schedule for Cash Collections on Accounts Receivable | ||||||
August | September | |||||
June: | ||||||
$ % | $ | $ | ||||
July: | ||||||
$ % | ||||||
$ % | ||||||
August: | ||||||
$ % | ||||||
$ % | ||||||
September: | ||||||
$ % | ||||||
Total cash receipts | $ | $ |
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