Schedule of Cash Collections of Accounts Receilvable OfficeMart Inc. has \"cash

Question

Schedule of Cash Collections of Accounts Receilvable OfficeMart Inc. has "cash and carry" customers monthly sales are to cash customers, while the remaining sales are to credit customers. Of the customers, 25% pay their accounts in the month of sale, while the remaining 75% pay their month following the month of sale. Projected sales for the next three months are as follows: October $114,000 November 143,000 December 209,000 The Accounts Receivable balance on September 30 was $76,000. and credit customers. OficeMart estimates that 20% of credit accounts in the 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 October November December Receipts from cash sales: Cash sales September sales on account: ??? Collected in October Odtober sales on account: Collected in October Collected in November November sales on account Collected in November Collected in December December sales on account: Collected in December Total cash receipts 3/31/2018, 1 of 1

Explanation / Answer

Schedule of expected cash collection :

October November December Cash sales 22800 28600 41800 September sales on accounts Collected in october 76000 October sales on account Collected in october 22800 Collected in november 68400 November sales on account Collected in november 28600 Collected in december 85800 December sale on account Collected in december 41800 Total cash receipts 121600 125600 169400

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