OfficeMart Inc. has "cash and carry" customers and credit customers. Office Mart estimates that 30% 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: April May June Month Projected sales $56,000 65,000 72,000 The Accounts Receivable balance on March 30 was $35,000. Prepare a schedule of cash collections from sales for April, May, and June.

OfficeMart Inc. has "cash and carry" customers and credit customers. Office Mart estimates that 30% 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: April May June Month Projected sales $56,000 65,000 72,000 The Accounts Receivable balance on March 30 was $35,000. Prepare a schedule of cash collections from sales for April, May, and June.

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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