Question
Schedule of Cash Collections on Accounts Receivable and Cash Budget Roybal Inc. sells all of its product on account. Roybal has the following accounts receivable
Schedule of Cash Collections on Accounts Receivable and Cash Budget
Roybal Inc. sells all of its product on account. Roybal has the following accounts receivable payment experience:
Percent paid in the month of sale | 20 | ||
Percent paid in the month after the sale | 55 | ||
Percent paid in the second month after the sale | 23 |
To encourage payment in the month of sale, Roybal gives a 2% cash discount. Roybal's anticipated sales for the next few months are as follows:
April | $275,500 | |
May | 359,600 | |
June | 377,000 | |
July | 348,000 | |
August | 435,000 |
Required:
1. Prepare a schedule of cash receipts for July. Be sure to enter percentages as whole numbers.
Roybal Inc. Schedule of Cash Receipts For July
2. Prepare a schedule of cash receipts for August. Be sure to enter percentages as whole numbers.
Roybal Inc. Schedule of Cash Receipts For AugustPayments
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