Question

QS 22-10 Cash receipts budget LO P2 X-Tel budgets sales of $70,000 for April, $130,000 for May, and $70,000 for June. In addition, sales are 50% cash and 50% on credit. All credit sales are collected in the month following the sale. The April 1 balance in accounts receivable is $17,000. Prepare a schedule of budgeted cash receipts for April, May, and June. X-TEL Cash Receipts Budget For April, May, and June April Sales $ 70,000 Less: Ending accounts receivable T 35,000 Cash receipts from: Cash sales 35,000 May $ 130,000 65,000 June $ 70,000 35,000 65,000 35,000 E Collections of prior month's receivables Total cash receipts | $ 35,000 $ 65,000 $ 35,000

Answer 1

	April	May	June
Sales	$70000	$130000	$70000
Less: Ending account receivable	$35000	$65000	$35000
Cash receipts from:
Cash sales	$35000	$65000	$35000
Collection of prior month's receivables	$17000	$35000	$65000
Total Cash receipts	$52000	$100000	$100000