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17 February, 12:22

X-Tel budgets sales of $60,000 for April, $100,000 for May, and $80,000 for June. In addition, sales are 40% cash and 60% on credit. All credit sales are collected in the month following the sale. The April 1 balance in accounts receivable is $15,000. Prepare a schedule of budgeted cash receipts for April, May, and June.

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  1. 17 February, 12:29
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    Following is the detailed answer of the question.

    X-Tel Cash Receipts Budgets For April, May, and June

    APRIL MAY JUNE

    Sales $60,000$ 100,000 $80,000

    Less ending 36,000 60,000 48,000

    account receivable (60%)

    Cash receipts from 24,000 40,000 32,000

    Cash sales (40% of sales)

    Collections of 15,000 36,000 60,000

    prior month's receivables

    Total cash receipts $39,000 $76,000 $92,000

    So total cash receipts at the end of April, May and June are 39000, 76000 and 92000 respectively.
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