Question

Schedule of Cash Receipts

Rosita Flores owns Rosita's Mexican Restaurant in Tempe, Arizona. Rosita's is an affordable restaurant near campus and several hotels. Rosita accepts cash and checks. Checks are deposited immediately. The bank charges $0.60 per check; the amount per check averages $75. “Bad” checks that Rosita cannot collect make up 4 percent of check revenue.

During a typical month, Rosita's has sales of $49,000. About 80 percent are cash sales. Estimated sales for the next three months are as follows:

April	$32,000
May	49,000
June	59,000

Required:

Prepare a schedule of cash receipts for May and June. Round your intermediate computations and final answers to the nearest whole dollar.

Rosita's Mexican Restaurant
Schedule of Cash Receipts
For the Months of May and June
	May	June
Cash sales:	$	$
Checks
Total	$	$

Answer 1

Schedule of cash collections	May	June
Cash sales	39,200	47,200
Checks	9,310	11,210
Total	48,510	58,410

	May	June
Check amount	9,800	11,800
Total checks	131	157
Bank charge	98	118
Bad debt	392	472
Check gross amount	9,800	11,800
Less: expenses	490	590
Collection	9,310	11,210