Question

Fill in the missing amounts in the following schedules. Half of each month’s sales are on account. March sales amounted to $189,000. 60% of credit sales is collected in the month of sale; 40% is collected in the following month.

April May June
Sales $268,000 $201,000 $303,600
Cash receipts:
From cash sales $134,000 $100,500 $151,800
From sales on account 113,900
Total cash receipts $214,400

Answer 1

Instructions are below.

Step-by-step explanation:

Giving the following information:

March:

Sales on account= 189,000*0.5= 94,500

April May June

Sales $268,000 $201,000 $303,600

Cash collection April:

From cash sales= 268,000*0.5= 134,000

From sales on account= (94,500*0.4) + (134,000*0.6)= 118,200

Total cash receopt= 252,200

Cash collection May:

From cash sales= 201,000*0.5= 100,500

From sales on account= (134,000*0.4) + (100,500*0.6)= 113,900

Total cash receopt= 214,400

Cash collection June:

From cash sales= 303,600*0.5= 151,800

From sales on account= (100,500*0.4) + (151,800*0.6)= 131,280

Total cash receopt= 283,080