Prepare a schedule of cash collections from sales for august

Reference no: EM131975120

Problem

Schedule of Cash Collections of Accounts Receivable

Office World Inc. has "cash and carry" customers and credit customers. Office World 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 of 2016 are as follows:

August $121,000
September 151,000
October 221,000

The Accounts Receivable balance on July 31, 2016, was $81,000.

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

Reference no: EM131975120

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