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 | $129,000 |
November | 161,000 |
December | 236,000 |
The Accounts Receivable balance on September 30 was $86,000.
Prepare a schedule of cash collections from sales for October, November, and December. Round all calculations to the nearest whole dollar.
OfficeMart Inc. | |||
Schedule of Cash Collections from Sales | |||
For the Three Months Ending December 31 | |||
October | November | December | |
Receipts from cash sales: | |||
Cash sales | $ | $ | $ |
September sales on account: | |||
Collected in October $ | |||
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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