Exercise 8.24 Schedule of Cash Receipts Del Spencer is the owner and founder of Del Spencer's Men's Clothing Store. Del Spencer's has its own house charge accounts and has found from past experience that 10 percent of its sales are for cash. The remaining 90 percent are on credit. An aging schedule for accounts receivable reveals the following pattern: 15 percent of credit sales are paid in the month of sale. 65 percent of credit sales are paid in the first month following the sale. 14 percent of credit sales are paid in the second month following the sale. 6 percent of credit sales are never collected. Credit sales that have not been paid until the second month following the sale are considered overdue and are subject to a 3 percent late charge. Del Spencer's has developed the following sales forecast: May June July August September $60,000 55,000 45,000 56,000 83,000 Required: Prepare a schedule of cash receipts for August and September.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Exercise 8.24 Schedule of Cash Receipts
Del Spencer is the owner and founder of Del Spencer's Men's Clothing Store. Del Spencer's has
percent of its sales
are for cash. The remaining 90 percent are on credit. An aging schedule for accounts receivable
reveals the following pattern:
15 percent of credit sales are paid in the month of sale.
65 percent of credit sales are paid in the first month following the sale.
14 percent of credit sales are paid in the second month following the sale.
6 percent of credit sales are never collected.
Credit sales that have not been paid until the second month following the sale are considered
overdue and are subject to a 3 percent late charge.
Del Spencer's has developed the following sales forecast:
May
June
July
August
September
$60,000
55,000
45,000
56,000
83,000
Required:
Prepare a schedule of cash receipts for August and September.
Transcribed Image Text:Exercise 8.24 Schedule of Cash Receipts Del Spencer is the owner and founder of Del Spencer's Men's Clothing Store. Del Spencer's has percent of its sales are for cash. The remaining 90 percent are on credit. An aging schedule for accounts receivable reveals the following pattern: 15 percent of credit sales are paid in the month of sale. 65 percent of credit sales are paid in the first month following the sale. 14 percent of credit sales are paid in the second month following the sale. 6 percent of credit sales are never collected. Credit sales that have not been paid until the second month following the sale are considered overdue and are subject to a 3 percent late charge. Del Spencer's has developed the following sales forecast: May June July August September $60,000 55,000 45,000 56,000 83,000 Required: Prepare a schedule of cash receipts for August and September.
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