Question

Schedule of Cash Collections on Accounts Receivable and Cash Budget

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	$199,500
May	260,400
June	273,000
July	252,000
August	315,000

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
PARTICULARS	AMOUNT
	$
Payments on account
From May credit sales
$260400*23%	59892
From June credit sales
$273000*55%	150150
From July credit sales
$252000*20%*98%	49392
Total cash receipts	259434

2)-

ROYBAL INC.
SCHEDULE OF CASH RECEIPTS
FOR AUGUST
PARTICULARS	AMOUNT
	$
Payments on account
From June credit sales
$273000*23%	62790
From July credit sales
$252000*55%	138600
From August credit sales
$315000*20%*98%	61740
Total cash receipts	263130