Bennett Inc. found that about 15% of its sales during the month were for cash. Bennett has

Question:

Bennett Inc. found that about 15% of its sales during the month were for cash. Bennett 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

Bennett's anticipated sales for the next few months are as follows:

April .......................$250,000

May .........................290,000

June .........................280,000

July .........................295,000

August .....................300,000

Required:

1. Calculate credit sales for May, June, July, and August.

2. Prepare a schedule of cash receipts for July and 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...