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

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Roybal Inc. sells its entire 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 ...................$190,000
May .....................248,000
June .....................260,000
July ......................240,000
August ..................300,000
Required:
1. Prepare a schedule of cash receipts for July.
2. Prepare a schedule of cash receipts for August.
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
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Cornerstones of Managerial Accounting

ISBN: 978-1305103962

6th edition

Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

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