Preparing a Schedule of Cash Collections on Accounts Receivable 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: $84,000 100,800 77,000 86,700 88,000 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.
Preparing a Schedule of Cash Collections on Accounts Receivable 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: $84,000 100,800 77,000 86,700 88,000 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Vishal
Transcribed Image Text:June:
0:00
July:
August:
$
September:
$
X
X
X
X
X
X
Total cash receipts
%
%
%
%
%
%
Kailua and Company Schedule
August
0
September
0 000
Transcribed Image Text:Preparing a Schedule of Cash Collections on Accounts Receivable
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:
$84,000
100,800
May
June
July
August
September
Required:
77,000
86,700
88,000
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.
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