Total June 2013 sales for Roys Catering are expected to be $ 450,000. Of each months sales,

Question:

Total June 2013 sales for Roy’s Catering are expected to be $ 450,000. Of each month’s sales, 80 percent is expected to be on credit. The Accounts Receivable balance at May 31 is $ 119,600 of which $ 90,000 represents the remainder of May credit sales. There are no receivables from months prior to April 2013. The collection pattern of Roy’s Catering credit sales is 70 percent in the month of sale, 20 percent in the month following the sale, and 10 percent in the second month following the sale. Roy’s Catering has no uncollectible accounts.

a. What were total sales for April 2013?

b. What were credit sales for May 2013?

c. What are projected cash collections for June 2013?

d. What is the expected balance of Accounts Receivable at June 30, 2013?

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...