If my total sales for April is 650,000 and half of sales are on cash and the other half on credit. Only 20% of a month's credit sales are collected in the month of sale. An additional 70% is collected in the following month and 8% is collected in the second month following sale. Bad debts have been 2% of credit sales.I need to do a schedule of expected cash collections. Would this be correct?April $65000--325,000*20% May--$227,500--325,000*70% and June $26,000--325,000*8% so total cash sales for April would b 65,000+227,500+26,000+325,000(which is half of sales in cash). Am I close?

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Originally Posted by cmarie613

If my total sales for April is 650,000 and half of sales are on cash and the other half on credit. Only 20% of a month's credit sales are collected in the month of sale. An additional 70% is collected in the following month and 8% is collected in the second month following sale. Bad debts have been 2% of credit sales.I need to do a schedule of expected cash collections. Would this be correct?April $65000--325,000*20% May--$227,500--325,000*70% and June $26,000--325,000*8% so total cash sales for April would b 65,000+227,500+26,000+325,000(which is half of sales in cash). Am I close?

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A somewhat impossible task since you don't have data on previous months sales.

.I need to do a schedule of expected cash collections
April 325,000*20% =$65000
May-325,000*70%=$227,500
June 325,000*8%=$26,000
so total cash sales for April 325,000(which is half of sales in cash)

Collections $325000+$65,000=$390,000 + outstanding billings from previous months

You need to learn to format so what you present is intelligible