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 $$247,000$

May $322,400$

June $338,000$

July $312,000$

August $390,000$

Required:

Question Content Area

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

Erewon Inc.

Schedule of Cash Receipts

For July

Line Item Description Amount

Payments on account:

From May credit sales:

fill in the blank $1$ of $13$$ $\backslash$times fill in the blank $2$ of $13\%$ fill in the blank $3$ of $13$$

From June credit sales:

fill in the blank $4$ of $13$$ $\backslash$times 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$$ $\backslash$times 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$$ $\backslash$times 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.

Erewon Inc.

Schedule of Cash Receipts

For August

Payments on account:

From June credit sales:

fill in the blank $1$ of $13$$ $\backslash$times fill in the blank $2$ of $13\%$ fill in the blank $3$ of $13$$

From July credit sales:

fill in the blank $4$ of $13$$ $\backslash$times 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$$ $\backslash$times 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$$ $\backslash$times fill in the blank $11$ of $13\%$ fill in the blank $12$ of $13$

Cash receipts fill in the blank $13$ of $13$$