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 2 5 % of monthly

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, 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:
Month Amount
October $122,000
November 153,000
December 223,000
The Accounts Receivable balance on September 30 was $82,000.
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
Line Item Description October November December
Receipts from cash sales:
Cash sales $Cash sales
30,500
$Cash sales
38,250
$Cash sales
55,750
September sales on account:
Collected in October Collected in October
82,000
October sales on account:
Collected in October Collected in October
18,300
Collected in November Collected in November
73,200
November sales on account:
Collected in November Collected in November
22,950
Collected in December Collected in December
December sales on account:
Collected in December Collected in December
Total cash receipts $Total cash receipts
$Total cash receipts
$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_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

Fraud Examination And Prevention

Authors: W. Steve Albrecht, Chad O. Albrecht

1st Edition

053872689X, 978-0538726894

More Books

Students also viewed these Accounting questions

Question

Prove that ||u + v||2 + ||u - v||2 = 2||u||2 + 2||v||2.

Answered: 1 week ago

Question

Understand the reasons for engaging consultants

Answered: 1 week ago