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, 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 of 2016 are as follows: August $105,000 September 131,000 October 192,000 The Accounts Receivable balance on July 31, 2016, was $70,000. Prepare a schedule of cash collections from sales for August, September, and October. Round all calculations to the nearest whole dollar. Office World Inc. Schedule of Collections from Sales For the Three Months Ending October 31, 2016 August September October Receipts from cash sales: Cash sales 26,250 32,750 48,000 July sales on account: Collected in August 70,000 August sales on account:

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, 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 of 2016 are as follows: August $105,000 September 131,000 October 192,000 The Accounts Receivable balance on July 31, 2016, was $70,000. Prepare a schedule of cash collections from sales for August, September, and October. Round all calculations to the nearest whole dollar. Office World Inc. Schedule of Collections from Sales For the Three Months Ending October 31, 2016 August September October Receipts from cash sales: Cash sales 26,250 32,750 48,000 July sales on account: Collected in August 70,000 August sales on account:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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