Reference no: EM131693741

Question: 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 percent will be paid in the month of billing, 50 percent will be paid in the month following billing, and 25 percent will be paid in the second month following billing. For the next five months, the following sales billings are expected:

May                   $84,000

June                   100,800

July                     77,000

August                 86,800

September            91,000

Required: Prepare a schedule showing the cash expected in payments on accounts receivable in August and in September.