Office world inc has cash and carry customers and credit

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Reference no: EM13583232

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 2014 are as follows:

August	$116,000
September	145,000
October	212,000

The Accounts Receivable balance on July 31, 2014, was $78,000.

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Prepare a schedule of cash collections from sales for August, September, and October.

Office World Inc.

Schedule of Collections from Sales

For the Three Months Ending October 31, 2014

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

Reference no: EM13583232

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