What is the balance of receivables at the end of june

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For Part A of the question I suggest you look at examples in the electronic textbook to determine how to prepare the schedule. Foundations of Financial Management (Fourteenth Edition)


Ellis Sport Shop projects the following sales:

April - $75,000

May - $95,000

June - $100,000

Seventy percent of Ellis' sales are on credit with 60 percent of receivables collected in the month after the sale and the rest of receivables collected in the second month after the sale. February sales were $60,000 and March sales were $70,000. In the past Ellis' bad debt percentage has been 0 and is expected to continue.

a) Prepare a monthly schedule of cash receipts for April-June.
b) What is the balance of Receivables at the end of June?

 

Reference no: EM13296263

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