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.

Question

Rebekah Marquez

Business

15 August, 21:42

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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Yadira Gray · Answer 1

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.