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Requirement 2. Prepare a revised schedule of cash receipts if receipts from sale

ID: 2567478 • Letter: R

Question

Requirement 2. Prepare a revised schedule of cash receipts if receipts from sales on account are 70% in the month of the sale,10% in the month following the sale, and

20%in the second month following the sale. What is the balance in Accounts Receivable on

March 31?

(Leave unused and zero balance account cells blank, do not enter "0".)

Cash Receipts from Customers

January

February

March

Total

Total sales

$12,400

$15,900

$15,800

$44,100

January

February

March

Total

Cash Receipts from Customers:

Accounts Receivable balance, January 1

January—Cash sales

$7,440

January—Credit sales, collection of January sales in January

3,472

January—Credit sales, collection of January sales in February

January—Credit sales, collection of January sales in March

February—Cash sales

February—Credit sales, collection of February sales in February

February—Credit sales, collection of February sales in March

March—Cash sales

March—Credit sales, collection of March sales in March

Total cash receipts from customers

Accounts Receivable balance, March 31:

Credit sales, collection in April and May

Enter any number in the edit fields and then click Check Answer.

Cash Receipts from Customers

January

February

March

Total

Total sales

$12,400

$15,900

$15,800

$44,100

January

February

March

Total

Cash Receipts from Customers:

Accounts Receivable balance, January 1

January—Cash sales

$7,440

January—Credit sales, collection of January sales in January

3,472

January—Credit sales, collection of January sales in February

January—Credit sales, collection of January sales in March

February—Cash sales

February—Credit sales, collection of February sales in February

February—Credit sales, collection of February sales in March

March—Cash sales

March—Credit sales, collection of March sales in March

Total cash receipts from customers

Accounts Receivable balance, March 31:

Credit sales, collection in April and May

Explanation / Answer

CASH RECEIPTS FROM CUSTOMERS JANUARY FEBUARY MARCH TOTAL Total sales 12400 15900 15800 44100 Cash receipts from customers Accounts receivable balance jan1 0 Jan-Cash sales (60% of total) 7440 7440 Jan- Credit sales, Collection in Jan 3472 3472 Jan-Credit sales, Collections in Feb 496 496 Jan-Credit Sales, Collection in March 992 992 Feb- Cash Sales 9540 9540 Feb-Credit Sales, Collection in Feb 4452 4452 Feb-Credit Sales, Collections in Mar 636 636 Mar-Cash sales 9480 9480 Mar-Credit Sales, Collection in Mar 4424 4424 Total Cash receipts 10912 14488 15532 40932 Accounts receivable Balance Mar31 Credit Sales, Collection in April and May 0 1272 1896 3168

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