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 receipts
For the month of may and june
	May ($)	June ($)
Cash sales	39,200.00	47,200.00
Credit sales	9,329.40	11,233.80
Total	48,529	58,434
Explanation:
Calculation of bank charges
	May ($)	June ($)
Total sales	49,000.00	59,000.00
Less: Cash Sales (80%)	39,200.00	47,200.00
Credit sales (A)	9,800.00	11,800.00
Approximate amount per check (B)	75.00	75.00
No of checks (A/B)	131.00	157.00
Bank charges per check	0.60	0.60
Total Bank charges	78.60	94.20
	(131*.6)	(157*.6)
Receipt from credit sale
	May ($)	June ($)
Credit sales (A)	9,800.00	11,800.00
Less:
Bank charges	78.60	94.20
Bad debt (4% of sale) (A*4%)	392.00	472.00
Net receipt	9,329.40	11,233.80
Notes:
Since checks are deposited immediately so amount will be received in same month of sale