Question
10. EX.22.18.ALGO Schedule of Cash Collections of Accounts Receivable OfficeMart Inc. has cash and carry customers and credit customers. OfficeMart estimates that 30% of monthly
10. EX.22.18.ALGO
Schedule of Cash Collections of Accounts Receivable
OfficeMart Inc. has "cash and carry" customers and credit customers. OfficeMart estimates that 30% 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 are as follows:
October | $129,000 |
November | 161,000 |
December | 236,000 |
The Accounts Receivable balance on September 30 was $86,000.
Prepare a schedule of cash collections from sales for October, November, and December. Round all calculations to the nearest whole dollar.
October | November | December | |
Receipts from cash sales: | |||
Cash sales | $fill in the blank 1 | $fill in the blank 2 | $fill in the blank 3 |
September sales on account: | |||
Collected in October | fill in the blank 4 | ||
October sales on account: | |||
Collected in October | fill in the blank 5 | ||
Collected in November | fill in the blank 6 | ||
November sales on account: | |||
Collected in November | fill in the blank 7 | ||
Collected in December | fill in the blank 8 | ||
December sales on account: | |||
Collected in December | fill in the blank 9 | ||
Total cash receipts | $fill in the blank 10 | $fill in the blank 11 | $fill in the blank 12 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started