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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

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:

Month Amount
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.

Line Item Description October November December
Receipts from cash sales:
Cash sales $Cash sales $Cash sales $Cash sales
September sales on account:
Collected in October Collected in October
October sales on account:
Collected in October Collected in October
Collected in November Collected in November
November sales on account:
Collected in November Collected in November
Collected in December Collected in December
December sales on account:
Collected in December Collected in December
Total cash collected $Total cash collected $Total cash collected $Total cash collected

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