Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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, 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 of 2016 are as follows: August September October $122,000 153,000 223,000 The Accounts Receivable balance on July 31, 2016, was $82,000 Prepare a schedule of cash collections from sales for August, September, and October. Round all calculations to the nearest whole dollar Office World Inc. Schedule of Collections from Sales August September October Receipts from cash sales: Cash sales July sales on account: Collected in August August sales on account: Collected in August Collected in September September sales on account: Collected in September Collected in October October sales on account: Collected in October Total cash receipts

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting A User Perspective

Authors: Robert E. Hoskin, Maureen R. Fizzell, Donald C. Cherry

4th Canadian Edition

0470834455, 978-0470834459

More Books

Students also viewed these Accounting questions

Question

Describe the importance of employer branding.

Answered: 1 week ago

Question

Explain corporate sustainability.

Answered: 1 week ago