Recei sales are to cash customers, while the remaining sales are month of sale,

Question

Recei sales are to cash customers, while the remaining sales are month of sale, while the remain ng B0% pay their accounts in the month fol ng the month of to credit sale. Projected sales for the next three months are as follows October November December The Accounts Receivable balance on September 30 was $90,000. Prepare a schedule of cash collections from sales for October, November, and December. Round all calculations to the nearest whole dollar customers. Of the aedit customers, 20% pay their accounts in the $134,000 168,000 245,000 OfficeMart Inc. Schedule of Cash Collections from Sales For the Three Months Ending December 31 November September sales on account Collected in October October sales on account Collected in October Collected in November November sales on account Collected in November Collected in December 107 200 X 134.4001 x

Explanation / Answer

oct nov Decmber Receipts from cash sales cash sales 26800 33600 49000 september sales on account collected in october 90,000 october sales on account collected in october (134000*80%*20%) 21440 collected in novemeber (134000*80%*80%) 85760 november sales on account collected in novemeber (168000*80%*20%) 26880 collected in december (168000*80%*80%) 107520 december sales on account collected in december (245000*80%*20%) 39200 total cash receipts 138240 146240 195720

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