Question

# Schedule of Cash Collections of Accounts Receivable Office World Inc. has "cash and carry" customers and...

Schedule of Cash Collections of Accounts Receivable

Office World Inc. has "cash and carry" customers and credit customers. Office World estimates that 20% 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 of 2016 are as follows:

 August \$122,000 September 153,000 October 223,000

The Accounts Receivable balance on July 31, 2016, was \$82,000.

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

 Office World Inc. Schedule of Collections from Sales For the Three Months Ending October 31, 2016 August September October Receipts from cash sales: Cash sales \$ \$ \$ July sales on account: Collected in August August sales on account: Collected in August Collected in September September sales on account: Collected in September Collected in October October sales on account: Collected in October Total cash receipts \$ \$ \$

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

 August September October Receipts from cash sales: Cash sales 24400 30600 44600 July Sales on Account Collected in august 82000 August sales on account collected in august 19520 Collected in september 78080 September sales on account: Collected in september 24480 Collected in october 97920 October sales on account Collected in october 35680 Total Cash receipts 125920 133160 178200

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