Lopez Inc found that about 35 percent of its sales
Lopez Inc. found that about 35 percent of its sales during the month were for cash. Lopez 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
Lopez’s anticipated sales for the next few months are as follows:
April ...... $ 200,000
May ...... 240,000
June ...... 230,000
July ...... 240,000
August ..... 250,000
Required:
1. Calculate credit sales for May, June, July, and August.
2. Prepare a schedule of cash receipts for July and August.
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