Question Content Area

Star Co. was organized on August 1 of the current year. Projected sales for the next three months are as follows:

August	$250,000
September	200,000
October	275,000

The company expects to sell 50% of its merchandise for cash. Of the sales on account, 30% are expected to be collected in the month of the sale and the remainder in the following month.

Prepare a schedule of collections from sales for August, September, and October.

Star Co. Schedule of Collections of Sales For the Three Months Ending October 31

	August	September	October
Sales	$250,000	$200,000	$275,000
Cash sales	fill in the blank 1	fill in the blank 2	fill in the blank 3
Credit sales	$fill in the blank 4	$fill in the blank 5	$fill in the blank 6
Collections of accounts receivable:
August credit sales	$fill in the blank 7	$fill in the blank 8
September credit sales		fill in the blank 9	$fill in the blank 10
October credit sales			fill in the blank 11
Cash sales	fill in the blank 12	fill in the blank 13	fill in the blank 14
Total collections