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Portia Incorporated is a retailer of scrapbooking products. The actual and forecast sales for the months of April through August are: Revenues $ 252,000 279,000 304,000 354,000 354,000 April (actual) May (actual) June July August All sales are credit sales. The collection pattern is 60% in the month of sale, 35% the following month and the remainder in the second month following the sale. Accounts receivable on April 1 were $126,500. Required: a. Prepare a cash receipts schedule for the period June through August (by month). Portia Incorporated Budgeted Cash Receipts For the Three Months Ending August 31 June Budgeted sales revenue Credit sales collected month of sale (60%) Credit sales collected month following sale (35%) Credit sales collected second month following sale (5%) Budgeted cash receipts b. What is the expected Accounts Receivable balance at August 31? Accounts Receivable Balance July August

Portia Incorporated is a retailer of scrapbooking products. The actual and forecast sales for the months of April through August are: Revenues $ 252,000 279,000 304,000 354,000 354,000 April (actual) May (actual) June July August All sales are credit sales. The collection pattern is 60% in the month of sale, 35% the following month and the remainder in the second month following the sale. Accounts receivable on April 1 were $126,500. Required: a. Prepare a cash receipts schedule for the period June through August (by month). Portia Incorporated Budgeted Cash Receipts For the Three Months Ending August 31 June Budgeted sales revenue Credit sales collected month of sale (60%) Credit sales collected month following sale (35%) Credit sales collected second month following sale (5%) Budgeted cash receipts b. What is the expected Accounts Receivable balance at August 31? Accounts Receivable Balance July August

FINANCIAL ACCOUNTING
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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Portia Incorporated is a retailer of scrapbooking products. The actual and forecast sales for the months of April through August are: Revenues $ 252,000 279,000 304,000 354,000 354,000 April (actual) May (actual) June July August All sales are credit sales. The collection pattern is 60% in the month of sale, 35% the following month and the remainder in the second month following the sale. Accounts receivable on April 1 were $126,500. Required: a. Prepare a cash receipts schedule for the period June through August (by month). Portia Incorporated Budgeted Cash Receipts For the Three Months Ending August 31 June Budgeted sales revenue Credit sales collected month of sale (60%) Credit sales collected month following sale (35%) Credit sales collected second month following sale (5%) Budgeted cash receipts b. What is the expected Accounts Receivable balance at August 31? Accounts Receivable Balance July August
Transcribed Image Text:Portia Incorporated is a retailer of scrapbooking products. The actual and forecast sales for the months of April through August are: Revenues $ 252,000 279,000 304,000 354,000 354,000 April (actual) May (actual) June July August All sales are credit sales. The collection pattern is 60% in the month of sale, 35% the following month and the remainder in the second month following the sale. Accounts receivable on April 1 were $126,500. Required: a. Prepare a cash receipts schedule for the period June through August (by month). Portia Incorporated Budgeted Cash Receipts For the Three Months Ending August 31 June Budgeted sales revenue Credit sales collected month of sale (60%) Credit sales collected month following sale (35%) Credit sales collected second month following sale (5%) Budgeted cash receipts b. What is the expected Accounts Receivable balance at August 31? Accounts Receivable Balance July August
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