Portia is a retailer of scrapbooking products. The sales forecast for the coming months is:

Portia's sales are all credit. The collection pattern is 60% in the month of sale, 35% the following month and the remainder in the second month following the sale. Accounts receivable on April 1 were $122,500.

a. Prepare a cash receipts schedule for the period June through August (by month).

b. What will the Accounts Receivable balance be on August 31?

 

Transcribed Image Text:

April (actual) May (actual) June Revenues $250,000 $275,000 $300,000 $350,000 July August $350,000 | April (actual) May (actual) June Revenues $250,000 $275,000 $300,000 $350,000 July August $350,000 |

Answer rating: 100% (QA)

CASH RECEIPT SCHEI CASH RECEIPT SCHEDULE Apr May pr ... View the full answer