Schedule of Cash Collections on Accounts Receivable and Cash Budget

Erewon Inc. sells all of its product on account. Erewon has the following accounts receivable payment experience:

Line Item Description	Percent
Percent paid in the month of sale	30
Percent paid in the month after the sale	50
Percent paid in the second month after the sale	18

To encourage payment in the month of sale, Erewon gives a 2% cash discount. The company's anticipated sales for the next few months are as follows:

Month	Amount
April	$228,000
May	297,600
June	312,000
July	288,000
August	360,000

Required:

Question Content Area

1. Prepare a schedule of cash receipts for July. Be sure to enter percentages as whole numbers.

Line Item Description	Amount
Payments on account:
From May credit sales:
fill in the blank 1 of 13$ fill in the blank 2 of 13 %	fill in the blank 3 of 13$
From June credit sales:
fill in the blank 4 of 13$ fill in the blank 5 of 13 %	fill in the blank 6 of 13
From July credit sales:
fill in the blank 7 of 13$ fill in the blank 8 of 13 %	fill in the blank 9 of 13
Less: July cash discount
fill in the blank 10 of 13$ fill in the blank 11 of 13 %	fill in the blank 12 of 13
Cash receipts	fill in the blank 13 of 13$

Question Content Area

2. Prepare a schedule of cash receipts for August. Be sure to enter percentages as whole numbers.

Payments on account:
From June credit sales:
fill in the blank 1 of 13$ fill in the blank 2 of 13 %	fill in the blank 3 of 13$
From July credit sales:
fill in the blank 4 of 13$ fill in the blank 5 of 13 %	fill in the blank 6 of 13
From August credit sales:
fill in the blank 7 of 13$ fill in the blank 8 of 13 %	fill in the blank 9 of 13
Less: August cash discount
fill in the blank 10 of 13$ fill in the blank 11 of 13 %	fill in the blank 12 of 13
Cash receipts	fill in the blank 13 of 13$