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, 25% pay their accounts in the month of sale, while the remaining 75% pay their accounts in the month following the month of sale. Projected sales for the next three months of 2016 are as follows: August $106,000 September 133,000 October 194,000 The Accounts Receivable balance on July 31, 2016, was $71,000. Prepare a schedule of cash collections from sales for August, September, and October. Round all calculations to the nearest whole dollar.
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