OfficeMart Inc. has cash and carry customers and credit customers. OfficeMart estimates that 25% of monthly sales
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, 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 are as follows:
October $58,000
November 65,000
December 72,000
The Accounts Receivable balance on September 30 was $35,000.
Prepare a schedule of cash collections from sales for October, November, and December.
Step by Step Answer:
Financial And Managerial Accounting
ISBN: 9781337119207
14th Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac