Question
OfficeMart Inc. has cash and carry customers and credit customers. OfficeMart estimates that 25% of monthly sales are to cash customers, while the remaining sales
OfficeMart Inc. has "cash and carry" customers and credit customers. OfficeMart 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 are as follows:
| Month | Amount |
|---|---|
| October | $126,000 |
| November | 158,000 |
| December | 231,000 |
The Accounts Receivable balance on September 30 was $84,000.
Prepare a schedule of cash collections from sales for October, November, and December. Round all calculations to the nearest whole dollar.
| Line Item Description | October | November | December |
|---|---|---|---|
| Receipts from cash sales: | |||
| Cash sales | $Cash sales | $Cash sales | $Cash sales |
| September sales on account: | |||
| Collected in October | Collected in October | ||
| October sales on account: | |||
| Collected in October | Collected in October | ||
| Collected in November | Collected in November | ||
| November sales on account: | |||
| Collected in November | Collected in November | ||
| Collected in December | Collected in December | ||
| December sales on account: | |||
| Collected in December | Collected in December | ||
| Total cash receipts | $Total cash receipts | $Total cash receipts | $Total cash receipts |
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