Schedule of Cash Receipts Del Spencer is the owner and founder of Del Spencer's Men's Clothing Store. Del Spencer's has its own house charge accounts and has found from past experience that 10 percent of its sales are for cash. The remaining 90 percent are on credit.An aging schedule for accounts receivable reveals the following pattern:15 percent of credit sales are paid in the month of sale.65 percent of credit sales are paid in the first month following the sale.14 percent of credit sales are paid in the second month following the sale.6 percent of credit sales are never collected.Credit sales that have not been paid until the second month following the sale are considered overdue and are subject to a 3 percent late charge.Del Spencer's has developed the following sales forecast:May$60,000June54,000July46,000August57,000September82,000Required:Prepare a schedule of cash receipts for August and September. Round all amounts to the nearest dollar.Del Spencer's Men's Clothing StoreSchedule of Cash ReceiptsFor the Months of August and SeptemberAugust SeptemberCash salesReceived from sales in:June:July:August:September:Total cash receipts

Cash budget refers to a budget which shows the estimated cash flows of the company during a specific…

Required: Prepare a schedule of cash receipts for August and September. Round all amounts to the nearest dollar. Del Spencer's Men's Clothing Store Schedule of Cash Receipts For the Months of August and September August September Cash sales Received from sales in: June: July: August: September: Total cash receipts

Required: Prepare a schedule of cash receipts for August and September. Round all amounts to the nearest dollar. Del Spencer's Men's Clothing Store Schedule of Cash Receipts For the Months of August and September August September Cash sales Received from sales in: June: July: August: September: Total cash receipts

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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Schedule of Cash Receipts

Del Spencer is the owner and founder of Del Spencer's Men's Clothing Store. Del Spencer's has its own house charge accounts and has found from past experience that 10 percent of its sales are for cash. The remaining 90 percent are on credit.
An aging schedule for accounts receivable reveals the following pattern:
15 percent of credit sales are paid in the month of sale.
65 percent of credit sales are paid in the first month following the sale.
14 percent of credit sales are paid in the second month following the sale.
6 percent of credit sales are never collected.
Credit sales that have not been paid until the second month following the sale are considered overdue and are subject to a 3 percent late charge.
Del Spencer's has developed the following sales forecast:
May
$60,000
June
54,000
July
46,000
August
57,000
September
82,000
Required:
Prepare a schedule of cash receipts for August and September. Round all amounts to the nearest dollar.
Del Spencer's Men's Clothing Store
Schedule of Cash Receipts
For the Months of August and September
August September
Cash sales
Received from sales in:
June:
July:
August:
September:
Total cash receipts

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