Question

X-Tel budgets sales of $95,000 for April, $105,000 for May, and $60,000 for June. Sales are 50% cash and 50% on credit. All credit sales are collected in the month following the sale. Total sales for March were $10,000. Prepare a schedule of cash receipts from sales for April, May, and June

Answer 1

To prepare a schedule of cash receipts from sales for April, May, and June, we need to consider the cash and credit sales and their collection timing. The cash receipts for April, May, and June would be $47,500, $52,500, and $30,000 respectively.

Step-by-step explanation:

To prepare a schedule of cash receipts from sales for April, May, and June, we need to consider the cash and credit sales and the timing of their collection. In this case, sales are 50% cash and 50% on credit, and all credit sales are collected in the month following the sale. To prepare a schedule of cash receipts from sales for April, May, and June, we need to consider the cash and credit sales and their collection timing. The cash receipts for April, May, and June would be $47,500, $52,500, and $30,000 respectively.

The cash receipts from sales for April would be $47,500 ($95,000 x 50%). For May, the cash receipts would be $52,500 ($105,000 x 50%). And for June, the cash receipts would be $30,000 ($60,000 x 50%).