Accounts Receivable | My Assignment Tutor

1.Actual Receipts (money in) from Accounts Receivable are 70% of the previousmonths Credit Sales and the balance of 30% owing is received in the followingmonth. For example if we had Credit Sales of $100000 in January we wouldexpect to receive 70% of that $100000 in February and the balance (30%) inMarch.Credit Sales for September 2020 were $80,000 as they were in August 2020.Cash Sales were $16,500 in August 2020 and $18,000 in September of 2020.2. Payment of Accounts Payable is paid 60% of purchases in the month ofpurchase and the remaining 40% in the month following. Purchases inSeptember 2020 were $36,000.3. The cash balance at 1 October 2020 was $52,890RequiredPrepare a cash budget month by month for the quarter ending 31 December 2020.Note that marks will be deducted for each incorrect posting to the cash budget.(15 Marks).

QUALITY: 100% ORIGINAL PAPER – NO PLAGIARISM – CUSTOM PAPER

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