Yeopay Plumbing Supply accepts bank credit cards and offers established plumbers charge accounts with terms of 1/eom, n/45. Yeopay's experience is that 25% of its sales are for cash and bank credit cards. The remaining 75% are on credit. Of the cash sales, 40% pay cash and the remaining 60% pay with bank credit cards. Yeopay receives payments from the bank on credit card sales at th end of the day. However, Yeopay has to pay 3% for these services. An aging schedule for accounts receivable shows the following pattern on credit sales: 20% pay in the month of sale. 50% pay in the first month following the month of sale. 15% pay in the second month following the month of sale. 12% pay in the third month following the month of sale. 3% are never collected. All accounts not paid by the end of the second month following the month of sale are considered overdue and are subject to a 5% monthly late charge. Yeopay has prepared the following sales forecasted
Yeopay Plumbing Supply accepts bank credit cards and offers established plumbers charge accounts with terms of 1/eom, n/45. Yeopay's experience is that 25% of its sales are for cash and bank credit cards. The remaining 75% are on credit. Of the cash sales, 40% pay cash and the remaining 60% pay with bank credit cards. Yeopay receives payments from the bank on credit card sales at th end of the day. However, Yeopay has to pay 3% for these services. An aging schedule for accounts receivable shows the following pattern on credit sales: 20% pay in the month of sale. 50% pay in the first month following the month of sale. 15% pay in the second month following the month of sale. 12% pay in the third month following the month of sale. 3% are never collected. All accounts not paid by the end of the second month following the month of sale are considered overdue and are subject to a 5% monthly late charge. Yeopay has prepared the following sales forecasted
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question

Transcribed Image Text:Yeopay Plumbing Supply accepts bank credit cards and offers established plumbers charge accounts with terms of 1/eom, n/45.
Yeopay's experience is that 25% of its sales are for cash and bank credit cards. The remaining 75% are on credit. Of the cash sales,
40% pay cash and the remaining 60% pay with bank credit cards. Yeopay receives payments from the bank on credit card sales at the
end of the day. However, Yeopay has to pay 3% for these services. An aging schedule for accounts receivable shows the following
pattern on credit sales:
20% pay in the month of sale.
50% pay in the first month following the month of sale.
15% pay in the second month following the month of sale.
12% pay in the third month following the month of sale.
3% are never collected.
All accounts not paid by the end of the second month following the month of sale are considered overdue and are subject to a 5%
monthly late charge. Yeopay has prepared the following sales forecasts:
June
July
August
$ 78,000
116,000
126,000
150,000
September
October
106,000
Required:
1a. Prepare a schedule of cash receipts for September. Cash receipts for September should total $126,771.
1b. Prepare a schedule of cash receipts for October. Cash receipts for October should total $123,151.
Complete this question by entering your answers in the tabs below.
Req 1A
Req 18
Prepare a schedule of cash receipts for September. Cash receipts for September should total $126,771. (All percentage answers should be
entered as whole numbers. If "Collection %" is 100 percent for a particular period, leave the corresponding cell blank.)
Budgeting Cash Receipts
Cash Receipts for September
Total
Sales
Sales %
Payment %
Collection %
Cash
Receipts
Collection of accounts receivable:
%
0
%
0
%
0
%
D
Total cash receipts
$
0
Reg 1A
Req 1B >
Req 1A
Req 1B
Prepare a schedule of cash receipts for October. Cash recipts for October should total $123,151. (All percentage ans
as whole numbers. If "Collection %" is 100 percent for a particular period, leave the corresponding cell blank.)
Budgeting Cash Receipts
Total
Cash Receipts for October
Sales %
Payment %
Collection%
Cash
Receipts
Sales
$
%
Collection of accounts receivable:
Total cash receipts
%
%
%
%
< Req 1A
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
Req 18
0
%
$
0
0
0
0
0
0
0
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