Question

Schedule of Cash Receipts Rosita Flores owns Rosita's Mexican Restaurant in Tempe, Arizona. Rosita's is an affordable restaurant near Campus and several hotels Rosita accepts cash and checks. Checks are deposited immediately. The bank charges $0.50 per check; the amount per check averages $80. "Bad" checks that Rosita cannot collect make up 2 percent of check revenue. During a typical month, Rosita's has sales of $49,000. About 80 percent are cash sales. Estimated sales for the next three months are as follows: April $30,000 49,000 June 59,000 Required: May Prepare a schedule of cash receipts for May and June. Round your intermediate computations and final answers to the nearest whole dollar Rosita's Mexican Restaurant Schedule of Cash Receipts For the Months of May and June May June Cash sales: $ 39,100 $ 47,200 Checks 9,542.75 X 11,490.75 X Total $ 48,742.75 X $ 59,690.75 X The foch r iots Budget shows sources of cash for the period. Some is actual cash and some is on account to be turned into cash later.

Answer 1

Ans:

Prepare the schedule of cash receipts for the month of May and June				(Amount in $)
Particulars			May		June
Cash sales [a]			39200	49000*80%	47200	59000*80%
Checks
Amount to be received through bank			9800	49000*20%	11800	59000*20%
Bad debts			-196	9800*2%	-236	11800*2%
Bank charges			-61	9800/80*0.50	-74	11800/80*0.50
Total[b]			9543		11490
Total cash receipts [a]+[b]			48743		58690
Note :
Amount to be received through check is 20% of sales
Bad debt expense is 2% of amount received through check
Bank charges are 0.50 per check value of 80