Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Schedule of Cash Collections of Accounts Receivable OfficeMart Inc. has cash and carry customers and credit customers. OfficeMart estimates that 25% of monthly sales are

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Schedule of Cash Collections of Accounts Receivable OfficeMart Inc. has "cash and carry customers and credit customers. OfficeMart 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 are as follows: October $106,000 133,000 November December 194,000 The Accounts Receivable balance on September 30 was $71,000 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 000 Total cash receipts o Schedule of cash payments for a service company Horizon Financial Inc. was organized on February 28. Projected selling and administrative expenses for each of the first three months of operations are as follows: March $124,400 April 116,900 May 106,400 Depreciation, insurance, and property taxes represent $27,000 of the estimated monthly expenses. The annual insurance premium was paid on February 28, and property taxes for the year will be paid in June. 60% of the remainder of the expenses are expected to be paid in the month in which they are incurred, with the balance to be paid in the following month Prepare a schedule of cash payments for selling and administrative expenses for March April and May, Excel Learning Systems Inc. Schedule of Cash Payments for Selling and Administrative Expenses For the Three Months Ending May 31 March April May March expenses: Paid in March Paid in April April expenses: Paid in April Paid in May May expenses: Paid in May Total cash payments

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_2

Step: 3

blur-text-image_3

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

Activity Based Cost Management In Government

Authors: Gary Cokins

2nd Edition

1567261817, 978-1567261813

More Books

Students also viewed these Accounting questions

Question

What research studies are you interested in conducting?

Answered: 1 week ago

Question

Discuss how S. Truett Cathys values shaped Chick-fil-As operation.

Answered: 1 week ago