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Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac
Edition 26ISBN: 978-1337498159Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac
Edition 26ISBN: 978-1337498159 Exercise 21
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 of 2016 are as follows:
The Accounts Receivable balance on September 30, 2016, was $35,000.
Prepare a schedule of cash collections from sales for October, November, and December.
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 of 2016 are as follows:
The Accounts Receivable balance on September 30, 2016, was $35,000.
Prepare a schedule of cash collections from sales for October, November, and December.
Explanation
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Cash collected from customers:
Schedule...
Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac
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