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 $0.70 per check; the amount per check averages $75. “Bad” checks that Rosita cannot collect make up 4 percent of check revenue.

During a typical month, Rosita's has sales of $45,000. About 80 percent are cash sales. Estimated sales for the next three months are as follows:

April	$32,000
May	45,000
June	54,000

Required:

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:	$	$
Checks
Total	$	$

Answer 1

Solution:

Rosita's Mexican Restaurant Schedule of Cash Receipts For the Months of May and June
Particulars	Calculations	May	Calculations	June
Cash sales	(45,000*80%)	$36,000	(54.000*80%)	$43,200
Checks:
Amount to be received	(45,000*20%)	$9,000	(54,000*20%)	$10,800
Bad debts	(9,000*4%)	($360)	(10,800*4%)	($432)
Bank charges	(9,000/75*0.70)	($84)	(10,800/75*0.70)	($101)
Total checks		$8,556		$10,267
Total cash receipts (Cash sales + Total checks)		$44,556		$53,467