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 $84,000 June 100,800 July 77,000 August 87,500 September 91,000 Required: 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 August September June: $fill in the blank 1 × fill in the blank 2 % $fill in the blank 3 $fill in the blank 4 July: $fill in the blank 5 × fill in the blank 6 % fill in the blank 7 $fill in the blank 8 × fill in the blank 9 % fill in the blank 10 August: $fill in the blank 11 × fill in the blank 12 % fill in the blank 13 $fill in the blank 14 × fill in the blank 15 % fill in the blank 16 September: $fill in the blank 17 × fill in the blank 18 % fill in the blank 19 fill in the blank 20 Total cash receipts $fill in the blank 21 $fill in the blank 22

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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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	$84,000
June	100,800
July	77,000
August	87,500
September	91,000

Required:

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
	August	September
June:
$fill in the blank 1 × fill in the blank 2 %	$fill in the blank 3	$fill in the blank 4
July:
$fill in the blank 5 × fill in the blank 6 %	fill in the blank 7
$fill in the blank 8 × fill in the blank 9 %		fill in the blank 10
August:
$fill in the blank 11 × fill in the blank 12 %	fill in the blank 13
$fill in the blank 14 × fill in the blank 15 %		fill in the blank 16
September:
$fill in the blank 17 × fill in the blank 18 %	fill in the blank 19	fill in the blank 20
Total cash receipts	$fill in the blank 21	$fill in the blank 22

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