Response to the following problem:
Kotari Inc. found that about 15 percent of its sales during the month were for cash.
Kotari has the following accounts receivable payment experience:
Percent paid in the month of sale ..........................20
Percent paid in the month after the sale ..................70
Percent paid in the second month after the sale ...........8
Kotari's anticipated sales for the next few months are as follows:
April .............. $200,000
May ................ 240,000
June ................ 230,000
July ................. 246,000
August ............. 250,000
Required:
1. Calculate credit sales for May, June, July, and August.
2. Prepare a schedule of cash receipts for July and August.