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In: Accounting
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, 25% pay their accounts in the month of sale, while the remaining 75% pay their accounts in the month following the month of sale. Projected sales for the next three months are as follows:
| October | $108,000 |
| November | 135,000 |
| December | 198,000 |
The Accounts Receivable balance on September 30 was $72,000.
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 | $ | $ | $ |
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Expert Solution
|
OfficeMart Inc. |
|||
|
Schedule of Cash Collections from Sales |
|||
|
For the Three Months Ending December 31 |
|||
|
October |
November |
December |
|
|
Receipts from cash sales: |
|||
|
Cash sales |
$ 32,400.00 |
$ 40,500.00 |
$ 59,400.00 |
|
September sales on account: |
|||
|
Collected in October |
$ 72,000.00 |
||
|
October sales on account: |
|||
|
Collected in October |
$ 18,900.00 |
||
|
Collected in November |
$ 56,700.00 |
||
|
November sales on account: |
|||
|
Collected in November |
$ 23,625.00 |
||
|
Collected in December |
$ 70,875.00 |
||
|
December sales on account: |
|||
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Collected in December |
$ 34,650.00 |
||
|
Total cash receipts |
$123,300.00 |
$120,825.00 |
$164,925.00 |
|
Working |
October |
November |
December |
|
Total sales (A) |
$ 108,000.00 |
$ 135,000.00 |
$ 198,000.00 |
|
cash sales (B= (30% of A)) |
$ 32,400.00 |
$ 40,500.00 |
$ 59,400.00 |
|
credit sales (C=(70% of A)) |
$ 75,600.00 |
$ 94,500.00 |
$ 138,600.00 |
|
Credit sales collection in current month (25% of C) |
$ 18,900.00 |
$ 23,625.00 |
$ 34,650.00 |
|
Credit sales collection in Following month (75% of C) |
$ 56,700.00 |
$ 70,875.00 |
$ 103,950.00 |
ekkarill92 answered 3 years agoRelated Solutions
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, 25% pay their accounts in the month of
sale, while the remaining 75% pay their accounts in the month
following the month of sale. Projected sales for the next three
months are as follows:
October
$121,000
November
151,000
December
221,000...
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 25% of monthly sales are to cash customers, while
the remaining sales are to credit customers. Of the credit
customers, 30% pay their accounts in the month of sale, while the
remaining 70% pay their accounts in the month following the month
of sale. Projected sales for the next three months are as
follows:
October
$58,000
November
65,000
December
72,000...
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 20% of monthly sales are to
cash customers, while the remaining sales are to credit customers.
Of the credit customers, 25% pay their accounts in the month of
sale, while the remaining 75% pay their accounts in the month
following the month of sale. Projected sales for the next three
months are as follows:
October
$115,000
November
144,000
December
210,000...
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 25% 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
$118,000
November
148,000
December
216,000...
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 25% of monthly sales are to
cash customers, while the remaining sales are to credit customers.
Of the credit customers, 25% pay their accounts in the month of
sale, while the remaining 75% pay their accounts in the month
following the month of sale. Projected sales for the next three
months are as follows:
October
$124,000
November
155,000
December
227,000...
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 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
$127,000
November
159,000
December
232,000...
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 25% 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
$118,000
November
148,000
December
216,000...
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
$126,000
November
158,000
December
231,000...
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
$111,000
November
139,000
December
203,000...
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 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 $115,000 November 144,000 December 210,000...
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