Schedule of Cash Collections of Accounts Receivable Office World Inc. has "cash and carry" customers...
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Accounting
Schedule of Cash Collections of Accounts Receivable
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, 25% pay their accounts in the month of sale, while the remaining 75% pay their accounts in the month following the month of sale. Projected sales for the next three months are as follows:
October
$118,000
November
148,000
December
216,000
The Accounts Receivable balance on September 30 was $79,000.
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
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