Question

# Roybal Inc. sells all of its product on account. Roybal has the following accounts receivable payment...

Roybal Inc. sells all of its product on account. Roybal has the following accounts receivable payment experience:

 Percent paid in the month of sale 20 Percent paid in the month after the sale 55 Percent paid in the second month after the sale 23

To encourage payment in the month of sale, Roybal gives a 2% cash discount. Roybal's anticipated sales for the next few months are as follows:

 April \$209,000 May 272,800 June 286,000 July 264,000 August 330,000

Required:

1. Prepare a schedule of cash receipts for July. Be sure to enter percentages as whole numbers.

 Roybal Inc. Schedule of Cash Receipts For July Payments on account: From May credit sales: \$ ×  % \$ From June credit sales: \$ ×  % From July credit sales: \$ ×  % Less: July cash discount \$ ×  % Cash receipts \$

2. Prepare a schedule of cash receipts for August. Be sure to enter percentages as whole numbers.

 Roybal Inc. Schedule of Cash Receipts For August Payments on account: From June credit sales: \$ ×  % \$ From July credit sales: \$ ×  % From August credit sales: \$ ×  % Less: August cash discount \$ ×  % Cash receipts \$

#### Homework Answers

Answer #1

Answer:-1)-

 Roybal Inc. Schedule of cash receipts For July Paticulars Amount Payments on account:- For May credit sales \$272800*23% 62744 For June credit sales \$286000*55% 157300 For July credit sales \$264000*20%=\$52800 Less:- Discount \$52800*2%=\$1056 51744 Total Cash Receipts 271788

2)-

 Roybal Inc. Schedule of cash receipts For August Paticulars Amount Payments on account:- For June credit sales \$286000*23% 65780 For July credit sales \$264000*55% 145200 For August credit sales \$330000*20%=\$66000 Less:- Discount \$66000*2%=\$1320 64680 Total Cash Receipts 275660
Know the answer?
Your Answer:

#### Post as a guest

Your Name:

What's your source?

#### Earn Coins

Coins can be redeemed for fabulous gifts.

##### Not the answer you're looking for?
Ask your own homework help question
ADVERTISEMENT
##### Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

ADVERTISEMENT