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Posted: October 17th, 2022
Problem 9-46 Cash Budget Aragon and Associates has found from past experience that 25%
Problem 9-46 Cash BudgetAragon and Associates has found from past experience that 25% of its services are for cash. The remaining 75% are on credit. An aging schedule for accounts receivable reveals the following pattern:a. Ten percent of fees on credit are paid in the month that service is rendered.b. Sixty percent of fees on credit are paid in the month following service.c. Twenty-six percent of fees on credit are paid in the second month following service.d. Four percent of fees on credit are never collected.Fees (on credit) that have not been paid until the second month following performance of the legal service are considered overdue and are subject to a 3% late charge.Aragon has developed the following forecast of fees:May$180,000June200,000July190,000August194,000September240,000Required:Prepare a schedule of cash receipts for August and September.
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