Question

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				$

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