Total June 2013 sales for Roy's Catering are expected to be $450,000. Of each month's sales, 80 percent is expected to be on credit. The Accounts Receivable balance at May 31 is $119,600, of which $90,000 represents the remainder of May credit sales. There are no receivables from months prior to April 2013. The collection pattern of Roy's Catering credit sales is 70 percent in the month of sale, 20 percent in the month following the sale, and 10 percent in the second month following the sale. Roy's Catering has no uncollectible accounts.
a. What were total sales for April 2013?
$
b. What were credit sales for May 2013?
$
c. What are projected cash collections for June 2013?
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June collections of April credit sales
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$
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|
June collections of May credit sales
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$
|
|
June cash sales
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$
|
|
June collections of June credit sales
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$
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|
Total June collections
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$
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d. What is the expected balance of Accounts Receivable at June 30, 2013?
$