Question
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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