Exercise 8.24 Schedule of Cash Receipts Del Spencer is the owner and founder of
ID: 2424609 • Letter: E
Question
Exercise 8.24
Schedule of Cash Receipts
Del Spencer is the owner and founder of Del Spencer's Men's Clothing Store. Del Spencer's has its own house charge accounts and has found from past experience that 10 percent of its sales are for cash. The remaining 90 percent are on credit. An aging schedule for accounts receivable reveals the following pattern:
15 percent of credit sales are paid in the month of sale.
65 percent of credit sales are paid in the first month following the sale.
14 percent of credit sales are paid in the second month following the sale.
6 percent of credit sales are never collected.
Credit sales that have not been paid until the second month following the sale are considered overdue and are subject to a 3 percent late charge.
Required:
Prepare a schedule of cash receipts for August and September. Round all amounts to the nearest dollar.
Del Spencer's Men's Clothing Store
Schedule of Cash Receipts
For the Months of August and September
August
September
Cash sales
$
$
Received from sales in:
June:
July:
August:
September:
Total cash receipts
$
$
HidePrepare a schedule of cash receipts for August and September. Round all amounts to the nearest dollar.
Del Spencer's Men's Clothing Store
Schedule of Cash Receipts
For the Months of August and September
August
September
Cash sales
$
$
Received from sales in:
June:
July:
August:
September:
Total cash receipts
$
$
Explanation / Answer
Answer:
Del Spencer's Men's Clothing Store Schedule of Cash Receipts For the Months of August and September Particulars August September Cash Sales 5600 8300 Received from sales in: June: 7137.9 July: 26325 5840.1 August: 7560 32760 September 11205 Total cash Receipts 46622.9 58105.1Related Questions
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