Exercise 73A Preparing a schedule of cash receipts LO 72 The

Exercise 7-3A Preparing a schedule of cash receipts LO 7-2 The budget director of Heather\'s Florist has prepared the following sales budget. The company had $290,000 in accounts receivable on July 1. Heather\'s Florist normally collects 100 percent of accounts receivable in the month following the month of sale. Required . Complete the schedule of cash receipts by filling in the missing amounts. . Determine the amount of accounts receivable the company will report on its third quarter pro forma balance sheet.

Solution

July August September Sales Budget Cash sales 74000 82000 72000 Sales on account 98000 114000 123600 Total budgeted sales 172000 196000 195600 Schedule of cash receipts Current cash sales 74000 82000 72000 Plus: Collection from Accounts Receivable 290000 98000 114000 Total budgeted collections 364000 180000 186000 b Accounts Receivable = $123600