Question

Exercise 14-3 Preparing a schedule of cash receipts LO 14-2 The budget director of Heather's Florist has prepared the following sales budget. The company had $310,000 in accounts receivable on July 1. Heather's Florist normally collects 100 percent of accounts receivable in the month following the month of sale. Required a. Complete the schedule of cash receipts by filling in the missing amounts. b. Determine the amount of accounts receivable the company will report on its third quarter pro forma balance sheet. Complete this question by entering your answers in the tabs below. Required A Required B Complete the schedule of cash receipts by filling in the missing amounts. July August September Sales Budget Cash sales $ 61,000 83,000 $ 144,000 $ 69,000 108,000 $ 177,000 $ 80,000 128,600 $ 208,600 Sales on account Total budgeted sales Schedule of Cash Receipts Current cash sales Plus: Collections from accounts receivable Total budgeted collections $ 371,000 $ 152,000 $ 188,000

Answer 1

A.
The schedule of cash receipts are shown below
	July	August	September
Sales budget
Cash sales	$61,000	$69,000	$80,000
Sales on account	$83,000	$108,000	$128,600
Total budgeted sales	$144,000	$177,000	$208,600
Schedule of cash receipts
Current cash sales	$61,000	$69,000	$80,000
Plus: Collections from accounts receivable	$310,000	$83,000	$108,000
Total budgeted collections	$371,000	$152,000	$188,000
Cash sales are collected immediately and therefore are collected in same month of sale.
Sales on account are collected in the following month. This mean june sales is collected in July, July in August, August in September and september sales would be collected in October
B.
Company would report accounts receivable of $128,600.
This amount is yet to be collected as on end of third quarter.
Accounts receivable	$128,600