Question: Preparing a Schedule of Cash Collections on Accounts Receivable Kailua and Company is a legal services firm. All sales of legal services are billed to the client (there are no cash sales). Kailua expects that, on average, 20 percent will be paid in the month of billing, 50 percent will be paid in the month following billing, and 25 percent will be paid in the second month following billing. For the next five months, the following sales billings are expected:
May $84,000
June 100,800
July 77,000
August 86,800
September 91,000
Required: Prepare a schedule showing the cash expected in payments on accounts receivable in August and in September.