Frank's Sporting Goods projects sales for the second quarter of 2006 to be as follows: $\text { April } \quad\$ 100,000\quad\quad \text { May } \quad\$ 120,000\quad\quad \text { June }\quad \$ 110,000$ Ten percent of Frank's sales are for cash, 70% of accounts receivable are collected one month following the sale, and the rest are collected two months following the sale. January sales were $40,000, February sales were $60,000, and March sales were $80,000.
A) Prepare a monthly schedule of cash receipts for the second quarter of 2006.
B) What is the balance in accounts receivable at the end of June?

Question

Frank's Sporting Goods projects sales for the second quarter of 2006 to be as follows:

\text { April } \quad\$ 100,000\quad\quad \text { May } \quad\$ 120,000\quad\quad \text { June }\quad \$ 110,000

Ten percent of Frank's sales are for cash, 70% of accounts receivable are collected one month following the sale, and the rest are collected two months following the sale. January sales were $40,000, February sales were $60,000, and March sales were $80,000.
A) Prepare a monthly schedule of cash receipts for the second quarter of 2006.
B) What is the balance in accounts receivable at the end of June?

Quizplus · Accepted Answer

The Answer of Frank's Sporting Goods projects sales for the second quarter of 2006 to be as follows: $\text { April } \quad\$ 100,000\quad\quad \text { May } \quad\$ 120,000\quad\quad \text { June }\quad \$ 110,000$ Ten percent of Frank's sales are for cash, 70% of accounts receivable are collected one month following the sale, and the rest are collected two months following the sale. January sales were $40,000, February sales were $60,000, and March sales were $80,000.

Frank's Sporting Goods Projects Sales for the Second Quarter of 2006