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

Question

Schedule of Cash Collections of Accounts Receivable OfficeMart Inc. has "cash and carry" customers and credit customers. OfficeMart estimates that 30% 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 November December $125,000 156,000 229,000 The Accounts Receivable balance on September 30 was $84,000. 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 October sales on account: Collected in October Collected in November November sales on account: Collected in December December sales on account: Collected in December receipts

Explanation / Answer

Schedule of cash collections from sales :

October November December Cash sales 37500 46800 68700 September sales on account Collected in october 84000 October sales in account Collected in october 21875 Collected in november 65625 November sales in account Collected in november 27300 Collected in december 81900 December sales an account Collected in december 40075 Total cash receipts 143375 139725 190675

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