Lawrence, Inc., found that about 10 percent of its sales during the month were for cash. Lawrence has the following accounts receivable payment experience:

Percent paid in the month of sale                               30%

Percent paid in the month after the sale                      60%

Percent paid in the second month after the sale           7%

Lawrence’s anticipated sales for the next few months are

 

April	$200,000
May	240,000
June	230,000
July	246,000
August	250,000

 

Required

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

2.   Prepare a cash receipts budget for July and August.

Answer rating: 100% (QA)

Answer Explanation Solution 1 May June July August Total Sales 240000 2... View the full answer