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Schedule of Cash Collections on Accounts Receivable and Cash Budget

Lopez Inc. found that about 45% of its sales during the month were for cash. Lopez has the following accounts receivable payment experience:

Percent paid in the month of sale 25
Percent paid in the month after the sale 68
Percent paid in the second month after the sale 5

Lopez's anticipated sales for the next few months are as follows:

April $250,000
May 290,000
June 280,000
July 295,000
August 300,000

Required:

1. Calculate credit sales for May.
Calculate credit sales for June.
Calculate credit sales for July.
Calculate credit sales for August.

2. Prepare a schedule of cash receipts for July and August. Round your answer to the nearest whole dollar, if necessary. If an amount box does not require an entry, leave it blank or enter "0". Be sure to enter percentages as whole numbers.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92812740

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