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, 40% pay their accounts in the month of sale, while the remaining 60% pay their accounts in the month following the month of sale. Projected sales for the next three months are as follows: October $700,000 November 650,000 December 500,000 The Accounts Receivable balance on September 30 was $290,000. Prepare a schedule of cash collections from sales for October, November, and December. Enter all amounts as positive numbers. Office World Inc.Schedule of Collections from SalesFor the Three Months Ending December 31 October November December Receipts from cash sales: Cash sales $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 September sales on account: Collected in October fill in the blank 4 October sales on account: Collected in October fill in the blank 5 Collected in November fill in the blank 6 November sales on account: Collected in November fill in the blank 7 Collected in December fill in the blank 8 December sales on account: Collected in December fill in the blank 9 Total cash collected $fill in the blank 10 $fill in the blank 11 $fill in the blank 12
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, 40% pay their accounts in the month of sale, while the remaining 60% pay their accounts in the month following the month of sale. Projected sales for the next three months are as follows: October $700,000 November 650,000 December 500,000 The Accounts Receivable balance on September 30 was $290,000. Prepare a schedule of cash collections from sales for October, November, and December. Enter all amounts as positive numbers. Office World Inc.Schedule of Collections from SalesFor the Three Months Ending December 31 October November December Receipts from cash sales: Cash sales $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 September sales on account: Collected in October fill in the blank 4 October sales on account: Collected in October fill in the blank 5 Collected in November fill in the blank 6 November sales on account: Collected in November fill in the blank 7 Collected in December fill in the blank 8 December sales on account: Collected in December fill in the blank 9 Total cash collected $fill in the blank 10 $fill in the blank 11 $fill in the blank 12
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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, 40% pay their accounts in the month of sale, while the remaining 60% pay their accounts in the month following the month of sale. Projected sales for the next three months are as follows:
October $700,000 November 650,000 December 500,000 The
Accounts Receivable balance on September 30 was $290,000.Office World Inc.Schedule of Collections from SalesFor the Three Months Ending December 31Prepare a schedule of cash collections from sales for October, November, and December. Enter all amounts as positive numbers.
October November December Receipts from cash sales: Cash sales $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 September sales on account: Collected in October fill in the blank 4 October sales on account: Collected in October fill in the blank 5 Collected in November fill in the blank 6 November sales on account: Collected in November fill in the blank 7 Collected in December fill in the blank 8 December sales on account: Collected in December fill in the blank 9 Total cash collected $fill in the blank 10 $fill in the blank 11 $fill in the blank 12
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