Question

2 parts

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 $370,000 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 Sales on account Total budgeted sales Schedule of Cash Receipts Current cash sales Plus Collections from accounts receivable Total budgeted collections $ 50 000 $ 65.000 5 00.000 98,000 111.000 129,600 $ 158,0001 $176 000 $ 209,600 $430,000 5 163.000 1 91 000 Required >

Answer 1

	July	August	September
Sales Budget:
Cash Sales	$60,000	$65,000	$80,000
Sales on Account	$98,000	$111,000	$129,600
Total Budgeted Sales	$158,000	$176,000	$209,600
Schedule of Cash Receipts:
Current Cash Sales	$60,000	$65,000	$80,000
Plus: Collections from Accounts Receivable	$370,000 [July 1st accounts receivables]	$98,000 [Credit sales in July]	$111,000 [Credit sales in August]
Total Budgeted Collections	$430,000	$163,000	$191,000

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Accounts receivables = $129,600 -->Credit sales in September