OfficeMart Inc. has \"cash and carry\" customers and credit customers. OfficeMar

Question

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, 25% pay their accounts in the month of sale, while the remaining 75% pay their accounts in the month following the month of sale. Projected sales for the next three months are as follows: October $122,000 November 153,000 December 223,000 The Accounts Receivable balance on September 30 was $82,000. Prepare a schedule of cash collections from sales for October, November, and December. Round all calculations to the nearest whole dollar.

Explanation / Answer

Answer:-

Statement of cash collection from debtors Particulars October November December Budgeted Sales $ 122000 153000 223000 Cash sales 25% (a) 30500 38250 55750 Credit sales 75% 91500 114750 167250 Cash Collection 25% in month of sale $ (b) 22875 28688 41813 75% in following month of sale $ (c) 82000 68625 86062 Total collection $ (a+b+c) 135375 135563 183625

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.