Innovative Office Inc. has cash and carry customers and credit customers. Innovative Office estimates that 30% of

Question:

Innovative Office Inc. has "cash and carry" customers and credit customers. Innovative Office estimates that 30% of monthly sales are to cash customers, while the remaining sales are to credit customers. Of the credit customers, 75% pay their accounts in the month of sale, while the remaining 25% pay their accounts in the month following the month of sale. Projected sales for the first three months of 20Y4 are as follows:

January ............................. $1,200,000

February ............................. 1,450,000

March ................................ 1,600,000

The Accounts Receivable balance on December 31, 20Y3, was $180,000. Prepare a schedule of cash collections from sales for January, February, and March?

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...