Schedule of Cash Receipts Rosita Flores owns Rosita\'s Mexican Restaurant in Tem

Question

Schedule of Cash Receipts Rosita Flores owns Rosita's Mexican Restaurant in Tempe, Arizona. Rosita's is an affordable restaurant near campus and several hotels. Rosita accepts cash and checks. Checks are deposited immediately. The bank charges $0.50 per check; the amount per check averages $75. "Bad" checks that Rosita cannot collect make up 3 percent of check revenue. During a typical month, Rosita's has sales of $45,000. About 80 percent are cash sales. Estimated sales for the next three months are as follows: April May $32,000 45,000 56,000 June Required: Prepare a schedule of cash receipts for May and June. Round your intermediate computations and final answers to the nearest whole dollar. Rosita's Mexican Restaurant Schedule of Cash Receipts For the Months of May and June June Cash sales: $ 36,000 V $ 44,800 Checks 2.75 x 2.75 2.75 May Total $ Accounting numeric field

Explanation / Answer

The question is being answered on an assumption that the proportion of cash sales and checks is same as in the case of typical month sales since no other information regarding the division criteria is available, and also in the provided solution in which half solution regarding cash sales is correct and it is a common practice that the rest of the sales are done for checks. Therefore, checks received for the month of May will be 45,000×20%=9,000 and the total sales for May will be $45,000 . For the month of June, the checks sales will amount to 11,200 I.e,56,000×20%..56,000 will be the total sales.

Note:- Bad debts checks are not considered while computing total sales and only the total value of transactions done is considered and apportioned as per the assumption mentioned above.

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.