Schedule of Cash Collections of Accounts Receivable

Office World Inc. has "cash and carries" 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, 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 2016 are as follows:

August	$108,000
September	135,000
October	198,000

The Accounts Receivable balance on July 31, 2016, was $72,000.

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 For the Three Months Ending October 31, 2016 August September Receipts from cash sales: October 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