Schedule of Cash Receipts Del Spencer is the owner and founder of Del Spencer's Men's Clothing Store. Del Spencer's has its own house charge accounts and has found from past experience that 10 percent of its sales are for cash. The remaining 90 percent are on credit. An aging schedule for accounts receivable reveals the following pattern: 15 percent of credit sales are paid in the month of sale. 65 percent of credit sales are paid in the first month following the sale. 14 percent of credit sales are paid in the second month following the sale. 6 percent of credit sales are never collected. Credit sales that have not been paid until the second month following the sale are considered overdue and are subject to a 3 percent late charge. Del Spencer's has developed the following sales forecast: May June July August September Required: Prepare a schedule of cash receipts for August and September. Round all amounts to the nearest dollar. $60,000 53,000 Del Spencer's Men's Clothing Store Schedule of Cash Receipts For the Months of August and September August 5,800 ✓ June: 45,000 58,000 84,000 Cash sales Received from sales in: July: August: September: Feedback Total cash receipts X September 8,400 ✓✔ X Check My Work Some sales may be cash; some are on account and may be received later.
Schedule of Cash Receipts Del Spencer is the owner and founder of Del Spencer's Men's Clothing Store. Del Spencer's has its own house charge accounts and has found from past experience that 10 percent of its sales are for cash. The remaining 90 percent are on credit. An aging schedule for accounts receivable reveals the following pattern: 15 percent of credit sales are paid in the month of sale. 65 percent of credit sales are paid in the first month following the sale. 14 percent of credit sales are paid in the second month following the sale. 6 percent of credit sales are never collected. Credit sales that have not been paid until the second month following the sale are considered overdue and are subject to a 3 percent late charge. Del Spencer's has developed the following sales forecast: May June July August September Required: Prepare a schedule of cash receipts for August and September. Round all amounts to the nearest dollar. $60,000 53,000 Del Spencer's Men's Clothing Store Schedule of Cash Receipts For the Months of August and September August 5,800 ✓ June: 45,000 58,000 84,000 Cash sales Received from sales in: July: August: September: Feedback Total cash receipts X September 8,400 ✓✔ X Check My Work Some sales may be cash; some are on account and may be received later.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Schedule of Cash Receipts
Del Spencer is the owner and founder of Del Spencer's Men's Clothing Store. Del Spencer's has its own house charge accounts and has found from past experience that 10 percent of
its sales are for cash. The remaining 90 percent are on credit. An aging schedule for accounts receivable reveals the following pattern:
15 percent of credit sales are paid in the month of sale.
65 percent of credit sales are paid in the first month following the sale.
14 percent of credit sales are paid in the second month following the sale.
6 percent of credit sales are never collected.
Credit sales that have not been paid until the second month following the sale are considered overdue and are subject to a 3 percent late charge.
Del Spencer's has developed the following sales forecast:
May
June
July
August
September
Required:
Prepare a schedule of cash receipts for August and September. Round all amounts to the nearest dollar.
$60,000
53,000
45,000
58,000
84,000
Del Spencer's Men's Clothing Store
Schedule of Cash Receipts
For the Months of August and September
August
September
5,800
$8,400 ✔
Cash sales
Received from sales in:
June:
July:
August:
September:
Total cash receipts
Feedback
X
X
X
X
Check My Work
Some sales may be cash; some are on account and may be received later.
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