30.00 points Blair is a retailer of assorted baby products. The sales forecast f

ID: 2588497 • Letter: 3

Question

30.00 points Blair is a retailer of assorted baby products. The sales forecast for the coming months is: RevenuOS $184.000 $210,000 $224,000 $245,000 $234,000 Juno July August All sales are credit sales. The cash collection pattern is 25% in the month of sale, 65% in the month olo ng the sale and the re inder in the second month ol wing the sale. Accounts eceivable on June 1 were $175 900 a. Prepare a cash receipts schedule for the period June through August (by month) June ust Month of Sale Month Following 2nd Month Total ColloctionS b. What will the Accounts Receivable balance be on August 31?

Explanation / Answer

$56,000

(224,000×25%)

$61,250

(245000×25%)

$58,500

(234000×25%)

$136,500

(210,000×65%)

$145,600

(224000×65%)

$159,250

(245000×65%)

$18,400

(184000×10%)

21,000

(210,000×10%)

$22,400

(224,000×10%)

Account receivable balance on Aug 31:

=(245,000×10%)+(234,000×75%)

=$200,000

June july August Month of sale