Schedule of Cash Collections of Accounts Receivable

Office World Inc. has "cash and carry" customers and credit customers. Office World 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 of 2014 are as follows:

August	$125,000
September	156,000
October	229,000

The Accounts Receivable balance on July 31, 2014, was $84,000.

Prepare a schedule of cash collections from sales for August, September, and October.

	August	September	October
Receipts From Cash Sales
Cash Sales	x	x	x
July Sale on Account:
Collected in August	x
August Sales on Account:
Collected in August	x
Collected in September		x
September Sales on Account:
Collected in September		x
Collected in October			x
October Sales on Account:
Collected in October			x
Total Cash Receipts	x	x	x

*Answers only where an X is