Question Content Area

Preparing a Schedule of Cash Collections on Accounts Receivable

Kailua and Company is a legal services firm. All sales of legal services are billed to the client $($there are no cash sales$).$ Kailua expects that, on average, $20\%$ will be paid in the month of billing, $50\%$ will be paid in the month following billing, and $25\%$ will be paid in the second month following billing. For the next $5$ months, the following sales billings are expected:

May $$84,000$

June $100,800$

July $77,000$

August $87,500$

September $91,000$

Required:

Prepare a schedule showing the cash expected in payments on accounts receivable in August and in September. If an amount box does not require an entry, leave it blank or enter $"0".$ Be sure to enter percentages as whole numbers.

Kailua and Company Schedule

August September

June:

$fill in the blank $1$

$\backslash$times fill in the blank $2$

$\%$ $fill in the blank $3$

$fill in the blank $4$

July:

$fill in the blank $5$

$\backslash$times fill in the blank $6$

$\%$ fill in the blank $7$

$fill in the blank $8$

$\backslash$times fill in the blank $9$

$\%$ fill in the blank $10$

August:

$fill in the blank $11$

$\backslash$times fill in the blank $12$

$\%$ fill in the blank $13$

$fill in the blank $14$

$\backslash$times fill in the blank $15$

$\%$ fill in the blank $16$

September:

$fill in the blank $17$

$\backslash$times fill in the blank $18$

$\%$ fill in the blank $19$

fill in the blank $20$

Total cash receipts $fill in the blank $21$

$fill in the blank $22$