Question: OfficeMart Inc has cash and carry customers and credit customers

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, 30% pay their accounts in the month of sale, while the remaining 70% pay their accounts in the month following the month of sale. Projected sales for the next three months of 2014 are as follows:
October ........$ 58,000
November ....... 65,000
December ....... 72,000
The Accounts Receivable balance on September 30, 2014, was $ 35,000. Prepare a schedule of cash collections from sales for October, November, and December.

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  • CreatedJune 27, 2014
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