Schedule of Cash Receipts Rosita Flores owns Rosita\'s Mexican Restaurant in Tem
ID: 2525206 • Letter: S
Question
Schedule of Cash Receipts Rosita Flores owns Rosita's Mexican Restaurant in Tempe, Arizona. Rosita's is an affordable restaurant near campus and several hotels. Rosita accepts cash and checks. Checks are deposited immediately, The bank charges $0.50 per check; the amount per check averages $75. "Bad" checks that Rosita cannot collect make up 3 percent of check revenue During a typical month, Rosita's has sales of $45,000, About 80 percent are cash sales. Estimated sales for the next three months are as follows: April May une Required: Prepare a schedule of cash receipts for May and June. Round your intermediate computations and final answers to the nearest whole dollar $32,000 45,000 Rosita's Mexican Restaurant Schedule of Cash Receipts For the Months of May and June May June Corect Checks TotalExplanation / Answer
Rosita’s Mexican Restaurant
Schedule of Cash Receipts
For the Months of May and June
Particulars
May ($)
June ($)
Cash Sales
36,000
44,800
Checks
8,671
10,791
TOTAL
44,671
55,591
Working Notes:
(1)May
Cash Sales (80%): $ 45,000 X 80 % = $ 36,000
Checks:
Amount per check = $ 75
Number of checks
= Amount of check sales / Amount per check
= ($ 45,000 X 20 %) / $ 75
=$ 9,000 / $ 75
=120 checks
Bank charges per check= $ 0.50
Total Bank charges for 120 checks = 120 checks X $ 0.50 = $ 60
Remaining value of checks=$ 9,000 - $ 60= $ 8,940
“Bad” Checks that cannot be collected (3%) = $ 8,940 X 3% = $ 269
Final Remaining value of checks=$ 8,940 - $ 269= $ 8,671
(2)June
Cash Sales (80%): $ 56,000 X 80 % = $ 44,800
Checks:
Amount per check = $ 75
Number of checks
= Amount of check sales / Amount per check
= ($ 56,000 X 20 %) / $ 75
=$ 11,200 / $ 75
=150 checks
Bank charges per check= $ 0.50
Total Bank charges for 120 checks = 150 checks X $ 0.50 = $ 75
Remaining value of checks=$ 11,200 - $ 75= $ 11,125
“Bad” Checks that cannot be collected (3%) = $ 11,125X 3% = $ 334
Final Remaining value of checks=$ 11,125- $ 334 = $ 10,791
Rosita’s Mexican Restaurant
Schedule of Cash Receipts
For the Months of May and June
Particulars
May ($)
June ($)
Cash Sales
36,000
44,800
Checks
8,671
10,791
TOTAL
44,671
55,591
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