Question
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
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, 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 are as follows:
| October | $110,000 |
| November | 138,000 |
| December | 201,000 |
The Accounts Receivable balance on September 30 was $74,000.
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 | |||
| Collected in November | |||
| November sales on account: | |||
| Collected in November | |||
| Collected in December | |||
| December sales on account: | |||
| Collected in December | |||
| Total cash receipts |
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Accounting For Managers And Entrepreneurs
Authors: Charles T. Horngren
9th Edition
1323167897, 9781323167892
