OfficeMart Inc. has cash and carry customers and credit customers. OfficeMart estimates that 25% of monthly sales

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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.

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Financial And Managerial Accounting

ISBN: 9781337119207

14th Edition

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

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