Question

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	$	$	$

Answer 1

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