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.

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Schedule of Cash Collections on Accounts Receivable and Cash Budget
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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