Office Universe Supplies Inc. has cash and carry customers and credit customers. Office Universe estimates that 25%
Question:
Office Universe Supplies Inc. has “cash and carry” customers and credit customers. Office Universe estimates that 25% of monthly sales are to cash customers, while the remaining sales are to credit customers. Of the credit customers, 20% pay their accounts in the month of sale, while the remaining 80% pay their accounts in the month following the month of sale. Projected sales for the next three months of 2012 are as follows:
August........................................$120,000
September...................................150,000
October........................................220,000
The Accounts Receivable balance on July 31, 2012, was $80,000. Prepare a schedule of cash collections from sales for August, September, and October.
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...
Step by Step Answer:
723 1 2 OFFICE UNIVERSE SUPPLIES INC Schedule of Collections from Sal...View the full answer
