Schedule of Cash Collections on Accounts Receivable and Cash Budget

Selig Inc. found that about $35\%$ of its sales during the month were for cash. The company has the following accounts receivable collection experience:

Line Item Description Value

Percent collected in the month of sale $21$

Percent collected in the month after the sale $65$

Percent collected in the second month after the sale $6$

Selig's anticipated sales for the next few months are as follows:

Month Amount

April $$248,000$

May $288,000$

June $276,000$

July $293,000$

August $301,000$

This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.

Open spreadsheet

Required:

Do not round intermediate calculations. Round all amounts to the nearest dollar.

$1.$ Calculate credit sales for May, June, July, and August.

Line Item Description Amount

Credit sales for May $fill in the blank $2$

$187,200$

Credit sales for June $fill in the blank $3$

$179,400$

Credit sales for July $fill in the blank $4$

$190,450$

Credit sales for August $fill in the blank $5$

$195,650$

$2.$ Prepare a schedule of cash receipts for July and August.

Selig Inc.

Schedule of Cash Receipts

For July and August

Line Item Description July August

Cash sales $fill in the blank $6$

$102,550$

$fill in the blank $7$

$105,350$

Collections on account:

From May credit sales fill in the blank $8$

fill in the blank $9$

From June credit sales fill in the blank $10$

fill in the blank $11$

From July credit sales fill in the blank $12$

fill in the blank $13$

From August credit sales fill in the blank $14$

fill in the blank $15$

Cash receipts $fill in the blank $16$

$fill in the blank $17$