Question Content Area

Trapp Co. was organized on August 1 of the current year. Projected sales for the next three months are as follows:

August	$100,000
September	185,000
October	225,000

The company expects to sell 40% of its merchandise for cash. Of the sales on account, one third are expected to be collected in the month of the sale and the remainder in the following month.

Prepare a schedule indicating cash collections of accounts receivable for August, September, and October. For each month's sales on account, enter the collection months in chronological order.

	August	September	October
August sales on account:
Collected in AugustCollected in OctoberCollected in September	$- Select -
Collected in AugustCollected in OctoberCollected in September		$- Select -
September sales on account:
Collected in AugustCollected in OctoberCollected in September		- Select -
Collected in AugustCollected in OctoberCollected in September			$- Select -
October sales on account:
Collected in AugustCollected in OctoberCollected in September			- Select -
Totals	$fill in the blank 11	$fill in the blank 12	$fill in the blank 13