Office World Inc. has cash and carry customers and credit customers. Office World estimates that 30%...

 

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Office World Inc. has cash and carry customers and credit customers. Office World estimates that 30% of monthly sales are to cash customers, while the remaining sales are to credit customers. Of the credit customers, 20% pay their accounts in the month of sale, while the remaining 80% pay their accounts in the month following the month of sale. Projected sales for the next three months are as follows: October November December $126,000 158,000 231,000 The Accounts Receivable balance on September 30 was $84,000. Prepare a schedule of cash collections from sales for October, November, and December, Round all calculations to the nearest whole dollar. Office World Inc. Schedule of Collections from Sales For the Three Months Ending December 31 Receipts from cash sales: Cash sales 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 December sales on account: Collected in December Total cash receipts October November December 00 0 0 00 Office World Inc. has cash and carry customers and credit customers. Office World estimates that 30% of monthly sales are to cash customers, while the remaining sales are to credit customers. Of the credit customers, 20% pay their accounts in the month of sale, while the remaining 80% pay their accounts in the month following the month of sale. Projected sales for the next three months are as follows: October November December $126,000 158,000 231,000 The Accounts Receivable balance on September 30 was $84,000. Prepare a schedule of cash collections from sales for October, November, and December, Round all calculations to the nearest whole dollar. Office World Inc. Schedule of Collections from Sales For the Three Months Ending December 31 Receipts from cash sales: Cash sales 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 December sales on account: Collected in December Total cash receipts October November December 00 0 0 00

Answer rating: 100% (QA)

October Cash Sales 30 of 126000 37800 Credit Sales 70 of 126000 88200 20 pay in t... View the full answer