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