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. Prepare a schedule of cash receipts for July and August. Round your answer to the nearest whole dollar, if necessary.