Preparing a Schedule of Cash Collections on Accounts ReceivableKailua 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, onaverage, 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 monthfollowing billing. For the next 5 months, the following sales billings are expected:$84,000100,80077,00086,80091,000MayJuneJulyAugustSeptemberRequired:Prepare a schedule showing the cash expected in payments on accounts receivable in August and in September. If an amount box does notrequire an entry, leave it blank or enter "0". Be sure to enter percentages as whole numbers.Kailua and Company Schedule June:$100,800 ✓ xJuly:77,00077,000 ✓ xAugust:86,200 X x86,200 X xSeptember:x90,000 XXTotal cash receiptsFeedbackCheck My WorkPartially correct25%50 %25 ✓ %20%50 %20 ✓ %August25,200 ✔38,500 ✔17,240 X80,940 XSeptember19,250 V43,100 X18,000 X80,350 X

Cash collections means the amount of money estimated to be collected by the entity from the sales of…

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 June 100,800 July 77,000 August 86,800 September 91,000 Required: 4 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. Kailua and Company Schedule

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 June 100,800 July 77,000 August 86,800 September 91,000 Required: 4 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. Kailua and Company Schedule

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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