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Problem 6-20 Cash receipts schedule (LO6-1] Eastern Auto Parts Inc
Problem 6-20 Cash receipts schedule (LO6-1] Eastern Auto Parts Inc. has 20 percent of its sales paid for in cash and 80 percent on credit. All credit accounts are collected in the following month. Assume the following sales: January February March April $ 82,000 72,000 117,000 62,000 Sales in December of the prior year were $92,000. Prepare a cash receipts schedule for January through April. Eastern Auto Parts Inc. January February March April Sales Cash receipts: Cash sales Prior month's credit sales Total cash receipts $ 0 $ 80,000 $ 81,000 $ 106,000
Expert Solution
| Eastern Auto Parts Inc | |||||
| Cash Receipts Schedule | |||||
| December | January | February | March | April | |
| Sales | $ 92,000.00 | $ 82,000 | $ 72,000 | $ 117,000 | $ 62,000 |
| Cash Receipts : | |||||
| Cash sales (20% of sales ) | $ 16,400 | $ 14,400 | $ 23,400 | $ 12,400 | |
| Prior Months Credit Sales(80%of prev month's sale) | $ 73,600 | $ 65,600 | $ 57,600 | $ 93,600 | |
| Total Cash Receipts | $ 90,000 | $ 80,000 | $ 81,000 | $ 106,000 | |
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