Question
Office World Inc. has cash and carry customers and credit customers. Office World estimates that 25% of monthly sales are to cash customers, while the
Office World Inc. has "cash and carry" customers and credit customers. Office World 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 2016 are as follows:
August | $116,000 |
September | 145,000 |
October | 212,000 |
The Accounts Receivable balance on July 31, 2016, was $78,000.
Prepare a schedule of cash collections from sales for August, September, and October. Round all calculations to the nearest whole dollar.
August | September | October | |
Receipts from cash sales: | |||
Cash sales | |||
July sales on account: | |||
Collected in August | |||
August sales on account: | |||
Collected in August | |||
Collected in September | |||
September sales on account: | |||
Collected in September | |||
Collected in October | |||
October sales on account: | |||
Collected in October | |||
Total cash receipts |
Please if you can show me how you got the numbers it would be great. Thank you
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