Question

ABC Company 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 indicating cash collections for August, September, and October.

ABC Company
Schedule of Collections from Sales
For the Three Months Ending October 31
	August	September	October
Sales	$250,000	$200,000	$275,000
Cash sales
Credit sales	$	$	$
Collections of accounts receivable:
August credit sales	$	$
September credit sales			$
October credit sales
Cash sales
Total collections	$	$	$

Total Collections for August (A.)___________

Total Collections for September (B.)___________

Total Collections for October (C.)___________

Answer 1