Question

# Schedule of Cash Collections of Accounts Receivable OfficeMart Inc. has "cash and carry" customers and credit...

Schedule of Cash Collections of Accounts Receivable

OfficeMart Inc. has "cash and carry" customers and credit customers. OfficeMart 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 \$129,000 November 161,000 December 236,000

The Accounts Receivable balance on September 30 was \$86,000.

Prepare a schedule of cash collections from sales for October, November, and December. Round all calculations to the nearest whole dollar.

 OfficeMart Inc. Schedule of Cash Collections from Sales For the Three Months Ending December 31 October November December 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 \$ \$ \$

 Working note October November December Sales 129000 161000 236000 Credit sales (70% of sales) 90300 112700 165200
 Schedule of the cash collection from sales October November December Receipts from cash sales: Cash sales (30%of sales) 38700 48300 70800 September sales on account : Collection in October 86000 October sales on account: Collected in October 18060 Collected in November 72240 November sales on account: Collected in November 22540 Collected in December 90160 December sales on account : Collected in December 33040 Total cash receipts 142760 143080 194000

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