$180,000 May June July August September 200,000 190,000 194,000 240,000
Argon and Association has found from past experience that 25% of its services are for cash.The remaining 75% are on credit.An aging schedule for accunts receivable reveals the following pattern:
a.Ten percent of fees on credit are collected in the month that services in rendered.
b. Sixty percent of fees on credit are collected in the month following services.
c.Twenty- six percent of fees on credit are collected in the second moth following services.
d.Four percent of fess on credit are never collected.
Fees (on credit) that have not been paid until the second month following perfomance of the legal services are considered overdue and are subject to a 3% late charge.
Argon has developed the following
(Note: Round all amounts to nearest dollars.)
Required:
Prepare a schedule of cash receipts for august and september.
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