Schedule of Cash Collections on Accounts Receivable and Cash Budget Roybal Inc. sells all of its product on account. Roybal has the following accounts receivable payment experience: Percent paid in the month of sale 20 Percent paid in the month after the sale 55 Percent paid in the second month after the sale 23 To encourage payment in the month of sale, Roybal gives a 2% cash discount. Roybal's anticipated sales for the next few months are as follows: April $199,500 May 260,400 June 273,000 July 252,000 August 315,000 Required: 1. Prepare a schedule of cash receipts for July. Be sure to enter percentages as whole numbers. Payments on account: From May credit sales: $ × % $ From June credit sales: $ × % From July credit sales: $ × % Less: July cash discount $ × %
Schedule of Cash Collections on Accounts Receivable and Cash Budget Roybal Inc. sells all of its product on account. Roybal has the following accounts receivable payment experience: Percent paid in the month of sale 20 Percent paid in the month after the sale 55 Percent paid in the second month after the sale 23 To encourage payment in the month of sale, Roybal gives a 2% cash discount. Roybal's anticipated sales for the next few months are as follows: April $199,500 May 260,400 June 273,000 July 252,000 August 315,000 Required: 1. Prepare a schedule of cash receipts for July. Be sure to enter percentages as whole numbers. Payments on account: From May credit sales: $ × % $ From June credit sales: $ × % From July credit sales: $ × % Less: July cash discount $ × %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Schedule of Cash Collections on
Roybal Inc. sells all of its product on account. Roybal has the following accounts receivable payment experience:
| Percent paid in the month of sale | 20 | ||
| Percent paid in the month after the sale | 55 | ||
| Percent paid in the second month after the sale | 23 |
To encourage payment in the month of sale, Roybal gives a 2% cash discount. Roybal's anticipated sales for the next few months are as follows:
| April | $199,500 | |
| May | 260,400 | |
| June | 273,000 | |
| July | 252,000 | |
| August | 315,000 |
Required:
1. Prepare a schedule of cash receipts for July. Be sure to enter percentages as whole numbers.
| Payments on account: | ||||
| From May credit sales: | ||||
| $ × % | $ | |||
| From June credit sales: | ||||
| $ × % | ||||
| From July credit sales: | ||||
| $ × % | ||||
| Less: July cash discount | ||||
| $ × % |
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