Steller Co. was organized on August 1 of the current year. Projected sales for t

Question

Steller Co. was organized on August 1 of the current year. Projected sales for the next three months are as follows: August $200,000 September 255,000 October 275,000 The company expects to sell 40% of its merchandise for cash each month ( August, September, October). The remainder 60% of its merchandise are sale on credit (accounts receivable from customers) Of the sales on credit(accounts receivable), one third are expected to be collected in the month of sale and the remainder in the following month. Prepare a schedule indicating total cash collections for August, September, and October.

Explanation / Answer

Steller Co. was organized on August 1 of the current year. Projected sales for t

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