Business, 16.07.2020 21:01 lauriepdx

Schedule of Cash Collections on Accounts Receivable and Cash Budget Bennett Inc. found that about 15% of its sales during the month were for cash. Bennett has the following accounts receivable payment experience:
Percent paid in the month of sale 25
Percent paid in the month after the sale 68
Percent paid in the second month after the sale 5
Bennett's anticipated sales for the next few months are as follows:
April $250,000
May 290,000
June 280,000
July 295,000
August 300,000
Required:
1. Calculate credit sales for May.$
Calculate credit sales for June.$
Calculate credit sales for July.$
Calculate credit sales for August.$
2. Prepare a schedule of cash receipts for July and August. Round your answer to the nearest whole dollar, if necessary.

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Answer from: callie2411

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

Schedule of Cash Receipts for July and August

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:

Schedule of Cash Receipts for July and August

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.

Answer from: Quest

The answer is groceries.

Answer from: Quest

definitely a

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