Office Mart Inc. has cash and carry customers and credit customers. Office Mart estimates that 25% of

Question:

Office Mart Inc. has "cash and carry" customers and credit customers. Office Mart estimates that 25% of monthly sales are to cash customers, while the remaining sales are to credit customers. Of the credit customers, 30% pay their accounts in the month of sale, while the remaining 70% pay their accounts in the month following the month of sale. Projected sales for the next three months of 2016 are as follows:

October......................$58,000

November.....................65,000

December.....................72,000

The Accounts Receivable balance on September 30, 2016, was $35,000.

Prepare a schedule of cash collections from sales for October, November, and December.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Managerial Accounting

ISBN: 978-1285866307

13th edition

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

Question Posted: