Weiland and Company is a medical billing services firm. All sales of billing services are billed to

Question:

Weiland and Company is a medical billing services firm. All sales of billing services are billed to the client (there are no cash sales). Weiland expects that, on average, 15% will be paid in the month of billing, 40% will be paid in the month following billing, and 42% will be paid in the second month following billing. For the next 5 months, the following sales billings are expected:

May............................$184,000

June..............................192,000

July..............................207,000

August..........................175,000

September......................164,000

Required:

Prepare a schedule showing the cash expected in payments on accounts receivable in August and in September.

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...