Answer:
Calculate credit sales for May.$
$246,500
Calculate credit sales for June.$
238,000
Calculate credit sales for July.$
250,750
Calculate credit sales for August.$255,000
<u>Schedule of Cash Receipts for July and August</u>
July August
Total Sales $295,000 $300,000
Credit Sales(85%) $250,750 $255,000
Cash Receipts (15%) $44,250 $45,000
Credit Receipts
- 25 % $62,688 $63,750
- 68 % $161,840 $170,510
- 5 % $12,325 $11,900
Credit Receipts $236,853 $246,160
Total Receipts $281,103 $291,160
Explanation:
<u>Schedule of Cash Receipts for July and August</u>
April May June July August
Total Sales $250,000 $290,000 $280,000 $295,000 $ 300,000
Credit Sales(85%) $212,500 $246,500 $238,000 $250,750 $255,000
Cash Receipts (15%) $37,500 $43,500 $42,000 $44,250 $45,000
Credit Receipts
- 25 % $53,125 $61,625 $59,500 $62,688 $63,750
- 68 % $0 $144,500 $167,620 $161,840 $170,510
- 5 % $0 $0 $10,625 $12,325 $11,900
Credit Receipts $53,125 $206,125 $237,745 $236,853 $246,160
Total Receipts $90,625 $249,625 $279,745 $281,103 $291,160
Technique : Cash receipts include Cash Sales paid and Credit Sales paid up at the respective percentages and months.
