Solved Exercise 8.20 Schedule of Cash Receipts Rosita Flores

A. 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 $0.50 per check; the amount per check averages $90. “Bad” checks that Rosita cannot collect make up 4 percent of check revenue. During a typical month, Rosita's has sales of $43,000. About 80 percent are cash sales. Estimated sales for the next three months are as follows: April $31,000 May 43,000 June 54,000 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: 34,300 43,200 Checks 8,208 10,308 $ $ Total 42,608 53,508 Feedback The Cash Receipts Budget shows sources of cash for the period. Some is actual cash and some is on account to be turned into cash later. Particulars Cash Sales (a) Checks Amount to be received Bad Debts (4% check revenue) Bank Charges Total (b) Total Cash Receipts (a) + (b) May 34,400 [43,000 x 80%] 8,600 [43,000 x 20%] (344) [8,600 x 4%] (48) [8,600 / $90 x $0.50] 8,208 42,608 June 43,200 [54,000 x 80%] 10,800 [54,000 x 20%] (432) [10,800 x 4%] (60) [10,800 / $90 x $0.50] 10,308 53,508 B. Cash Budget