Schedule of Cash Collections of Accounts Receivable

Office World Inc. has "cash and carry" customers and credit customers. Office World estimates that 25% of monthly sales are to cash customers, while the remaining sales are to credit customers. Of the credit customers, 40% pay their accounts in the month of sale, while the remaining 60% pay their accounts in the month following the month of sale.

Projected sales for the next three months are as follows:

October $700,000 November 650,000 December 500,000

The Accounts Receivable balance on September 30 was $290,000.

Prepare a schedule of cash collections from sales for October, November, and December. Enter all amounts as positive numbers.

Office World Inc.

Schedule of Collections from Sales For the Three Months Ending December 31

October November December

Cash sales from OCT. __________ Nov. __________ Dec. __________

September sales on account:

Collected in Oct ______

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 collected OCt__________ Nov. _________ Dec._________