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Question - Schedule of Cash Collections of Accounts Receivable
OfficeMart Inc. has "cash and carry" customers and credit customers. OfficeMart 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 are as follows:
October $122,000
November 153,000
December 223,000
The Accounts Receivable balance on September 30 was $82,000.
Prepare schedule of cash collections from sales for October, November, and December. Round all calculations to the nearest whole dollar.
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