Question: I have received the wrong answer 3 times. Please do not copy other's answers as they are wrong. please show me how to work out
I have received the wrong answer 3 times. Please do not copy other's answers as they are wrong. please show me how to work out this problem. thanks.
Pauls Pool Service provides pool cleaning, chemical application, and pool repairs for residential customers. Clients are billed weekly for services provided and usually pay 60 percent of their fees in the month the service is provided. In the month following service, Paul collects 35 percent of service fees. The final 5 percent is collected in the second month following service. Paul purchases his supplies on credit and pays 50 percent in the month of purchase and the remaining 50 percent in the month following purchase. Of the supplies Paul purchases, 75 percent is used in the month of purchase, and the remainder is used in the month following purchase.
The following information is available for the months of June, July, and August, which are Pauls busiest months:
June 1 cash balance $14,200.
June 1 supplies on hand $3,800.
June 1 accounts receivable $7,900.
June 1 accounts payable $3,700.
Estimated sales for June, July, and August are $23,700, $35,600, and $37,900, respectively.
Sales during May were $22,100, and sales during April were $15,900.
Estimated purchases for June, July, and August are $8,800, $16,800, and $12,000, respectively.
Purchases in May were $4,900.
Required:
Compute budgeted cash receipts and budgeted cash payments for each month.
Compute the balances necessary to prepare a budgeted balance sheet for August 31 for each of the following accounts:
| Balances for August 31 Budgeted Balance Sheet | |
| Cash | |
| June 1 Balance | $14,600selected answer incorrect |
| Add: Total Cash Receipts | 90,600selected answer incorrect |
| Less: Total Cash Payments | 34,500selected answer incorrect |
| August 31 Balance | $70,700selected answer incorrect |
| Supplies Inventory | |
| August Purchases | $1,800selected answer incorrect |
| Accounts Receivable | |
| August Sales | $15,200selected answer incorrect |
| July Sales | 1,800selected answer incorrect |
| Balance at August 31 | 17,000 |
| Accounts Payable | |
| August Purchases | $6,000 |
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