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Question - 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 $190,000
May 248,000
June 260,000
July 240,000
August 300,000
Required -
1. Prepare a schedule of cash receipts for July. Be sure to enter percentages as whole numbers.
2. Prepare a schedule of cash receipts for August. Be sure to enter percentages as whole numbers.
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