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Office Warehouse Supplies Inc. has cash and carry customersand credit customers. Office Warehouse estimates that 40% ofmonthly sales are to cash customers, while the remaining
Office Warehouse Supplies Inc. has" cash and carry" customersand credit customers. Office Warehouse estimates that 40% ofmonthly sales are to cash customers, while the remaining sales areto credit customers. Of the credit customers, 30% pay theiraccounts in the month of sale, while the remaining 70% pay theiraccounts in the month following the month of sale. Projectedsales for the first three months of 2008 are as follows:
January $220,000
February $275,000
March $260,000
The accounts Receivable balance on December 31, 2007, was$180,000.
Prepare a schedule of cash collections from sales for January,February, and March.
Someone please help. All I know is the total cashcollected in January is, $307,600.
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