Schedule of Cash Collections of Accounts ReceivableOfficeMart Inc. has "cash and carry" customers and credit customers. OfficeMart estimates that 25% of monthly sales are to cash customerwhile the remaining sales are to credit customers. Of the credit customers, 20% pay their accounts in the month of sale, while the remainim80% pay their accounts in the month following the month of sale. Projected sales for the next three months are as follows:OctoberNovemberDecember$109,000136,000199,000The Accounts Receivable balance on September 30 was $73,000.Prepare a schedule of cash collections from sales for October, November, and December. Round all calculations to the nearest whole dollaOfficeMart Inc.Schedule of Cash Collections from SalesFor the Three Months Ending December 31NovemberReceipts from cash sales:Cash salesSeptember sales on account:Collected in OctoberOctober sales on account:Collected in OctoberCollected in NovemberNovember sales on account:October27,250 ✔73,000 ✓X34,000December49,750

chedule of Cash Collections of Accounts Receivable fficeMart Inc. has "cash and carry" customers and credit customers. OfficeMart estimates that 25% of monthly sales are to cash cum hile the remaining sales are to credit customers. Of the credit customers, 20% pay their accounts in the month of sale, while the re 0% pay their accounts in the month following the month of sale. Projected sales for the next three months are as follows: $109,000 136,000. 199,000 e Accounts Receivable balance on September 30 was $73,000. ctober ovember ecember epare a schedule of cash collections from sales for October, November, and December. Round all calculations to the nearest whol OfficeMart Inc. Schedule of Cash Collections from Sales For the Three Months Ending December 31 October November eceipts from cash sales: Cash sales i eptember sales on account: Collected in October tober sales on account: Collected in October Collected in November 27,250 ✔ 73,000✔ X 34,000 December 49,750

chedule of Cash Collections of Accounts Receivable fficeMart Inc. has "cash and carry" customers and credit customers. OfficeMart estimates that 25% of monthly sales are to cash cum hile the remaining sales are to credit customers. Of the credit customers, 20% pay their accounts in the month of sale, while the re 0% pay their accounts in the month following the month of sale. Projected sales for the next three months are as follows: $109,000 136,000. 199,000 e Accounts Receivable balance on September 30 was $73,000. ctober ovember ecember epare a schedule of cash collections from sales for October, November, and December. Round all calculations to the nearest whol OfficeMart Inc. Schedule of Cash Collections from Sales For the Three Months Ending December 31 October November eceipts from cash sales: Cash sales i eptember sales on account: Collected in October tober sales on account: Collected in October Collected in November 27,250 ✔ 73,000✔ X 34,000 December 49,750

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.

Question

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 customer
while the remaining sales are to credit customers. Of the credit customers, 20% pay their accounts in the month of sale, while the remainim
80% pay their accounts in the month following the month of sale. Projected sales for the next three months are as follows:
October
November
December
$109,000
136,000
199,000
The Accounts Receivable balance on September 30 was $73,000.
Prepare a schedule of cash collections from sales for October, November, and December. Round all calculations to the nearest whole dolla
OfficeMart Inc.
Schedule of Cash Collections from Sales
For the Three Months Ending December 31
November
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:
October
27,250 ✔
73,000 ✓
X
34,000
December
49,750

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