Schedule of Cash Collections on Accounts Receivable and Cash BudgetRoybal Inc. sells all of its product on account. Roybal has the following accounts receivable payment experience:Percent paid in the month of sale20  Percent paid in the month after the sale55  Percent paid in the second month after the sale23  To encourage payment in the month of sale, Roybal gives a 2% cash discount. Roybal's anticipated sales for the next few months are as follows:April$199,500 May260,400 June273,000 July252,000 August315,000 Required:1.  Prepare a schedule of cash receipts for July. Be sure to enter percentages as whole numbers.Payments on account:    From May credit sales:    $ ×  %   $From June credit sales:    $ ×  %    From July credit sales:    $ ×  %    Less: July cash discount    $ ×  %

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Asked Mar 5, 2020
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Schedule of Cash Collections on Accounts Receivable and Cash Budget

Roybal Inc. sells all of its product on account. Roybal has the following accounts receivable payment experience:

Percent paid in the month of sale 20    
Percent paid in the month after the sale 55    
Percent paid in the second month after the sale 23    

To encourage payment in the month of sale, Roybal gives a 2% cash discount. Roybal's anticipated sales for the next few months are as follows:

April $199,500  
May 260,400  
June 273,000  
July 252,000  
August 315,000  

Required:

1.  Prepare a schedule of cash receipts for July. Be sure to enter percentages as whole numbers.

Payments on account:        
From May credit sales:        
$ ×  %       $
From June credit sales:        
$ ×  %        
From July credit sales:        
$ ×  %        
Less: July cash discount        
$ ×  %
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Expert Answer

Step 1

Cash Budget:

Cash budget is a financial budget. It is prepared to assess inflows and outflows of cash to manage cash balance and timing related issues. Clos...

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