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, 30% pay their accounts in the month of sale, while the remaining 70% pay their accounts in the month following the month of sale. Projected sales for the next three months are as follows:
October $58,000
November 65,000
December 72,000
The Accounts Receivable balance on September 30 was $35,000.
Prepare a schedule of cash collections from sales for October, November, and December. Enter all amounts as positive numbers.
OfficeMart Inc.
Schedule of Cash Collections from Sales
For the Three Months Ending December 31
October November December
Receipts from cash sales:
Cash sales $fill in the blank 1
$fill in the blank 2
$fill in the blank 3
September sales on account:
Collected in October fill in the blank 4
October sales on account:
Collected in October fill in the blank 5
Collected in November fill in the blank 6
November sales on account:
Collected in November fill in the blank 7
Collected in December fill in the blank 8
December sales on account:
Collected in December fill in the blank 9
Total cash collected $fill in the blank 10
$fill in the blank 11
$fill in the blank 12

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

Step: 3

blur-text-image

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

Anti Money Laundering Governance Risk Management And Compliance GRC Book 4

Authors: Uwem Essia, Kester Ehiwario

1st Edition

B0BBXZ6GKR, 979-8848908473

More Books

Students also viewed these Accounting questions

Question

List some problems associated with risk tolerance questionnaires.

Answered: 1 week ago