Schedule of Cash Collections on Accounts Receivable and Cash Budget

Roybal Inc. sells all of its 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	$275,500
May	359,600
June	377,000
July	348,000
August	435,000

Required:

1. Prepare a schedule of cash receipts for July. Be sure to enter percentages as whole numbers.

Roybal Inc. Schedule of Cash Receipts For July
Payments on account:
From May credit sales:
$ ×  %				$
From June credit sales:
$ ×  %
From July credit sales:
$ ×  %
Less: July cash discount
$ ×  %
Cash receipts				$

2. Prepare a schedule of cash receipts for August. Be sure to enter percentages as whole numbers.

Roybal Inc. Schedule of Cash Receipts For August
Payments on account:

Answer rating: 100% (QA)

To prepare the schedule of cash receipts for July and August for Roybal Inc we will follow the given ... View the full answer