Question

8
Schedule of Cash Collections on Accounts Receivable and Cash Budget Roybal Inc. sells all of its product on account. Roybal has the following accounts receivable payment experience: Percent paid in the month of sale Percent paid in the month after the sale Percent paid in the second month after the sale To encourage payment in the month of sale, Roybal gives a 2% cash discount. Roybal's anticipated sales for the next few months are as follows: April $275,500 May 359,600 June 377,000 July 348,000 August 435,000 Required: 1. Prepare a schedule of cash receipts for July. Be sure to enter percentages as whole numbers.

Answer 1

Roybal Inc.
Schedule of Cash Receipts
For July
Payment on account:
From May credit sales:
$359,600	x	23%	$82,708
From June credit sales:
$377,000	x	55%	$207,350
From July credit sales:
$348,000	x	20%	$69,600
Less: July cash discount:
$348,000	x	2%	$6,960
Cash receipts			$352,698

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Roybal Inc.
Schedule of Cash Receipts
For August
Payment on account:
From June credit sales:
$377,000	x	23%	$86,710
From July credit sales:
$348,000	x	55%	$191,400
From August credit sales:
$435,000	x	20%	$87,000
Less: August cash discount:
$435,000	x	2%	$8,700
Cash receipts			$356,410