Answer the following please while showing your steps: Preparing a Schedule of Ca
ID: 2521572 • Letter: A
Question
Answer the following please while showing your steps:
Preparing a Schedule of Cash Collections on Accounts Receivable Garst and Company is a public accounting firm. All sales of accounting services are billed to the client (there are no cash sales). Garst expects that, on average, 20% will be paid by clients in the month of billing, 50% will be paid in the month following billing, and 2500 will be paid in the second month following billing. For the next five months, the following sales billings are expected: May June July August September S 84,000 100,800 77,000 86,800 91,000 Required: Prepare a schedule showing the cash expected in payments on accounts receivable in August and in September.Explanation / Answer
August September Collection from customers: June sales 25200 July sales 38500 19250 August sales 17360 43400 September sales 18200 Cash received from accounts receivable 81060 80850