Prepare a schedule of cash receipts for May and June.
Explanation of Solution
Cash Receipts: The amount that a company expects to collect from customers during the month, quarter, or year is known as cash receipts.
Prepare a schedule of cash receipts for May and June:
RM Restaurant | ||
Schedule of Cash Receipts | ||
For the Months of May and June | ||
Particulars | May | June |
Cash sales: | 5,850 | 7,280 |
VISA/Master card: | 30,108 | 42,339 |
American Express | 5,897 | 8,292 |
Total | $41,855 | $57,911 |
Table (1)
Working note 1:
Calculate the revised sales estimates:
For April:
For May:
For June:
Working note 2:
Calculate the amount of cash sales:
For May:
For June
Working note 3:
Calculate the amount of cash collection from VISA/Master card:
For May:
Step 1: Calculate the amount of May fee:
Step 2: Calculate the amount of cash collected from VISA/Master card.
Calculate the amount of cash collection from VISA/Master card:
For June:
Step 1: Calculate the amount of June fee:
Step 2: Calculate the amount of cash collected from VISA/Master card.
Working note 4:
Calculate the amount of cash collection from American Express:
For May:
Step 1: Calculate the amount of May fee:
Step 2: Calculate the amount of cash collected from American Express.
Calculate the amount of cash collection from American Express:
For June:
Step 1: Calculate the amount of June fee:
Step 2: Calculate the amount of cash collected from American Express.
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Chapter 8 Solutions
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