Schedule of Cash Collections on Accounts Receivable and Cash BudgetBennett Inc. found that about 15% of its sales during the month were forcash. Bennett has the following accounts receivable collectionexperience: Percent collected in the month of sale Percent collected in the month after the sale Percent collected in the second month after the sale 25 68 5 Bennett's anticipated sales for the next few months are as follows: AprilMayJuneJulyAugust $250,000290,000280,000295,000300,000 (Note: Round all amounts to the nearest dollar.) Required:1. Calculate credit sales for May, June, July, and August.2. Prepare a schedule of cash receipts for July and August.
Schedule of Cash Collections on Accounts Receivable and Cash BudgetBennett Inc. found that about 15% of its sales during the month were forcash. Bennett has the following accounts receivable collectionexperience: Percent collected in the month of sale Percent collected in the month after the sale Percent collected in the second month after the sale 25 68 5 Bennett's anticipated sales for the next few months are as follows: AprilMayJuneJulyAugust $250,000290,000280,000295,000300,000 (Note: Round all amounts to the nearest dollar.) Required:1. Calculate credit sales for May, June, July, and August.2. Prepare a schedule of cash receipts for July and August.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Schedule of Cash Collections on
Bennett Inc. found that about 15% of its sales during the month were for
cash. Bennett has the following accounts receivable collection
experience:
|
Percent collected in the month of sale Percent collected in the month after the sale Percent collected in the second month after the sale |
25 68 5 |
Bennett's anticipated sales for the next few months are as follows:
| April May June July August |
$250,000 290,000 280,000 295,000 300,000 |
| (Note: Round all amounts to the nearest dollar.) |
Required:
1. Calculate credit sales for May, June, July, and August.
2. Prepare a schedule of cash receipts for July and August.
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