Schedule of Cash Collections on Accounts Receivable and Cash BudgetBennett 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 sale25 Percent paid in the month after the sale68 Percent paid in the second month after the sale5 Bennett's anticipated sales for the next few months are as follows:April$250,000 May290,000 June280,000 July295,000 August300,000 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 ReceiptsFor July and AugustJulyAugustCash salesPayments on account:From May credit sales:%From June credit sales:%%From July credit sales:%%From August credit sales:%Cash receiptsI I

Accounts receivable refers to the balance amount to the firm for goods and services delivered but…

Answered: Schedule of Cash Collections on…

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 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

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

Definition Definition Estimate of an organization's cash flow for a future period. A cash budget forecasts future cash receipts and payments from various sources for a fiscal year. A cash budget can be created once a month or once a week to determine the organization's cash position and ensure its performance in relation to the budget. It aids in determining whether the company has enough cash and cash equivalents to meet its operational needs in the future.

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