Example 4: 11/2/2020 home
Example 4: 11/2/2020 home
Completion requirements
Opened: Tuesday, 11 February 2020, 12:00 AM
Due: Tuesday, 18 February 2020, 12:00 AM
Allis Sport Shop projects the following sales:
•April
$75,000
•May
$95,000
•June
$110,000
Ninety percent of Ellis’ sales are on credit with 60 percent of receivables collected in the month after the sale and the rest of receivables collected in the second month after the sale. February sales were $60,000 and March sales were $70,000. In the past Ellis’ bad debt percentage has been 0 and is expected to continue.
a. Prepare a monthly schedule of cash receipts for April to June
b. What is the balance of receivables at the end of June?