Question

X-Tel budgets sales of $60,000 for April, $100,000 for May, and $80,000 for June. In addition, sales are 40% cash and 60% on credit. All credit sales are collected in the month following the sale. The April 1 balance in accounts receivable is $15,000. Prepare a schedule of budgeted cash receipts for April, May, and June.

Answer 1

Explanation:

Following is the detailed answer of the question.

X-Tel Cash Receipts Budgets For April, May, and June

                                                APRIL                 MAY              JUNE

Sales                                   $60,000$         100,000        $80,000

Less ending                         36,000              60,000          48,000

account receivable (60%)

Cash receipts from                24,000            40,000           32,000

Cash sales (40% of sales)

Collections of                       15,000               36,000           60,000

prior month’s receivables

Total cash receipts             $39,000            $76,000       $92,000

So total cash receipts at the end of April, May and June are 39000, 76000 and 92000 respectively.