Aragon and Associates has found from past experience that 25% of its services are for cash. The remaining 75% are on credit. An aging schedule for accounts receivable reveals the following pattern:Ten percent of fees on credit are collected in the month that service is rendered.Sixty percent of fees on credit are collected in the month following service.Twenty-six percent of fees on credit are collected in the second month following service.Four percent of fees on credit are never collected.Fees (on credit) that have not been paid until the second month following performance of the legal service are considered overdue and are subject to a 3% late charge.Aragon has developed the following forecast of fees:May$180,000 June200,000 July190,000 August194,000 September240,000 Required:Prepare a schedule of cash receipts for August and September. If an amount box does not require an entry, leave it blank or enter "0". Round answers to the nearest dollar.

Answered: Image /qna-images/answer/16d68885-14df-480d-aad7-40779ad5ec58.jpg

Answered: Aragon and Associates has found from…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 24E: Del Spencer is the owner and founder of Del Spencers Mens Clothing Store. Del Spencers has its own...

See similar textbooks

Related questions

Question

100%

Aragon and Associates has found from past experience that 25% of its services are for cash. The remaining 75% are on credit. An aging schedule for accounts receivable reveals the following pattern:

Ten percent of fees on credit are collected in the month that service is rendered.
Sixty percent of fees on credit are collected in the month following service.
Twenty-six percent of fees on credit are collected in the second month following service.
Four percent of fees on credit are never collected.

Fees (on credit) that have not been paid until the second month following performance of the legal service are considered overdue and are subject to a 3% late charge.

Aragon has developed the following forecast of fees:

May	$180,000
June	200,000
July	190,000
August	194,000
September	240,000

Required:

Prepare a schedule of cash receipts for August and September. If an amount box does not require an entry, leave it blank or enter "0". Round answers to the nearest dollar.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 3 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions