Kailua and Company is a legal services firm. All sales of legal services are billed to the client (there are no cash sales). Kailua expects that, on average, 20% will be paid in the month of billing, 50% will be paid in the month following billing, and 25% will be paid in the second month following billing. For the next 5 months, the following sales billings are expected: May $84,000 100,800 77,000 87,900 June July August September Required: Prepare a schedule showing the cash expected in payments on accounts receivable in August and i September. If an amount box does not require an entry, leave it blank or enter "0". Be sure to enter percentages as whole 91,000
Kailua and Company is a legal services firm. All sales of legal services are billed to the client (there are no cash sales). Kailua expects that, on average, 20% will be paid in the month of billing, 50% will be paid in the month following billing, and 25% will be paid in the second month following billing. For the next 5 months, the following sales billings are expected: May $84,000 100,800 77,000 87,900 June July August September Required: Prepare a schedule showing the cash expected in payments on accounts receivable in August and i September. If an amount box does not require an entry, leave it blank or enter "0". Be sure to enter percentages as whole 91,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Kailua and Company is a legal services firm. All sales of legal services are billed to the client (there are no cash sales). Kailua expects that, on average, 20% will be paid in the month of billing, 50% will be paid in the month following
billing, and 25% will be paid in the second month following billing. For the next 5 months, the following sales billings are expected:
May
June
July
August
September
Required:
June:
Prepare a schedule showing the cash expected in payments on accounts receivable in August and in September. If an amount box does not require an entry, leave it blank or enter "0". Be sure to enter percentages as whole
numbers.
$
July:
$
$
August:
September:
$84,000
100,800
77,000
87,900
Total cash receipts
91,000
%
%
%
%
%
%
Kailua and Company Schedule
August
00 0
September
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