Office World Inc. has cash and carry customers and credit customers. Office World estimates that 25% of

Question:

Office World Inc. has "cash and carry" customers and credit customers. Office World estimates that 25% of monthly sales are to cash customers, while the remaining sales are to credit customers. Of the credit customers, 40% pay their accounts in the month of sale, while the remaining 60% pay their accounts in the month following the month of sale.
Projected sales for the next three months are as follows:
October.....................$700,000
November....................650,000
December....................500,000
The balance on September 30 was $290,000.
Prepare a schedule of cash collections from sales for October, November, and December.
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...