Prepare a schedule of estimated cash collections

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Question - Bounce Athletics Ltd, which develops and runs athletics training programs for primary schools, has budgeted revenue for the first 6 months of 2020 as follows:

Month

Budgeted revenue

January

$9,000

February

43,000

March

69,000

April

22,000

May

69,000

June

52,000

All revenues are provided on account and Bounce Athletics Ltd posts out the account statements on the last day of each month for that month's services. Schools are given 14 days to pay and 70% of schools pay within the month after the invoices are posted. The other 30% usually pay the following month. In December 2019 Bounce Athletics Ltd provided no training programs as the schools were preparing for the end-of-year break. The company also made sure that all outstanding balances owed by schools from November were paid before the end of December 2019.

Required - Prepare a schedule of estimated cash collections from revenue for the first 6 months of 2020 for Bounce Athletics Ltd.

Reference no: EM132986533

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