Question

Schedule of Cash Receipts

Rosita Flores owns Rosita's Mexican Restaurant in Tempe, Arizona. Rosita's is an affordable restaurant near campus and several hotels. Rosita accepts cash and checks. Checks are deposited immediately. The bank charges $0.70 per check; the amount per check averages $75. “Bad” checks that Rosita cannot collect make up 4 percent of check revenue.

During a typical month, Rosita's has sales of $44,000. About 80 percent are cash sales. Estimated sales for the next three months are as follows:

April	$33,000
May	44,000
June	54,000

Required:

Prepare a schedule of cash receipts for May and June. Round your intermediate computations and final answers to the nearest whole dollar.

Rosita's Mexican Restaurant
Schedule of Cash Receipts
For the Months of May and June
	May	June
Cash sales:	$	$
Checks
Total	$	$

Answer 1

Prepare the schedule of cash receipts for the month of May and June				(Amount in $)
Particulars			May		June
Cash sales [a]			35200	44000*80%	43200	54000*80%
Checks
Amount to be received through bank			8800	44000*20%	10800	54000*20%
Bad debts			-352	8800*4%	-432	10800*4%
Bank charges			-82	8800/75*0.70	-101	10800/75*0.70
Total[b]			8366		10267
Total cash receipts [a]+[b]			43566		53467
Note :
Amount to be received through check is 20% of sales
Bad debt expense is 4% of amount received through check
Bank charges are 0.70 per check value of 75