Question
Schedule of Cash Collections of Accounts Receivable OfficeMart Inc. has cash and carry customers and credit customers. OfficeMart estimates that 30% of monthly sales are
Schedule of Cash Collections of Accounts Receivable
OfficeMart Inc. has "cash and carry" customers and credit customers. OfficeMart estimates that 30% 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 are as follows:
| October | $111,000 |
| November | 139,000 |
| December | 203,000 |
The Accounts Receivable balance on September 30 was $74,000.
Prepare a schedule of cash collections from sales for October, November, and December. Round all calculations to the nearest whole dollar.
| OfficeMart Inc. | |||
| Schedule of Cash Collections from Sales | |||
| For the Three Months Ending December 31 | |||
| October | November | December | |
| Receipts from cash sales: | |||
| Cash sales | $ | $ | $ |
| September sales on account: | |||
| Collected in October | |||
| 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 receipts | $ | $ | $ |
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Client Importance And Audit Quality In Highly Connected Jurisdictions
Authors: Kelly G. Yuen
1st Edition
3330350520, 978-3330350526
