Schedule of Cash Collections on Accounts Receivable and Cash Budget Bennett Inc. found that about 30% of its sales during the month were for cash. Bennett has the following accounts receivable payment experience: Percent paid in the month of sale 25 Percent paid in the month after the sale 68 Percent paid in the second month after the sale 5 Bennett's anticipated sales for the next few months are as follows: April $250,000 May 290,000 June 280,000 July 295,000 August 300,000
Schedule of Cash Collections on Accounts Receivable and Cash Budget Bennett Inc. found that about 30% of its sales during the month were for cash. Bennett has the following accounts receivable payment experience: Percent paid in the month of sale 25 Percent paid in the month after the sale 68 Percent paid in the second month after the sale 5 Bennett's anticipated sales for the next few months are as follows: April $250,000 May 290,000 June 280,000 July 295,000 August 300,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Schedule of Cash Collections on
Bennett Inc. found that about 30% of its sales during the month were for cash. Bennett has the following accounts receivable payment experience:
| Percent paid in the month of sale | 25 | ||
| Percent paid in the month after the sale | 68 | ||
| Percent paid in the second month after the sale | 5 |
Bennett's anticipated sales for the next few months are as follows:
| April | $250,000 | ||
| May | 290,000 | ||
| June | 280,000 | ||
| July | 295,000 | ||
| August | 300,000 |
Transcribed Image Text:Required:
1. Calculate credit sales for May.
Calculate credit sales for June.
Calculate credit sales for July.
Calculate credit sales for August.
2. Prepare a schedule of cash receipts for July and August. Round your answers to the nearest whole dollar, if necessary. If an amount box does not require an entry, leave it blank or enter "0". Be sure to enter percentages as whole numbers.
Bennett Inc.
Schedule of Cash Receipts
For July and August
July
August
Cash sales
Payments on account:
From May credit sales:
%
From June credit sales:
%
%
From July credit sales:
%
%
From August credit sales:
%
Cash receipts
I I
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