Question
Schedule of Cash Collections of Accounts Receivable OfficeMart Inc. has cash and carry customers and credit customers. OfficeMart estimates that 20% of monthly sales are
Schedule of Cash Collections of Accounts Receivable
OfficeMart Inc. has "cash and carry" customers and credit customers. OfficeMart estimates that 20% 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$122,000November153,000December223,000
The Accounts Receivable balance on September 30 was $82,000.
prepare schedule of cash collections from sales for October, November, and December. Round all calculations to the nearest whole dollar.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started