Schedule of Cash Collections on Accounts Receivable and Cash Budget
Bennett Inc. found that about 15% of its sales during the month were for cash. Bennett 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 |
Bennett'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. Calculate credit sales for each month.
3. 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.