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OfficeMart Inc. has "cash and carry customers and credit customers. OfficeMart estimates that 25% of monthly sales are to cash customers, while the remaining sales are to credit customers. Of the credit custom 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 are as follows: October $128,000 November 160,000 December 234,000 The Accounts Receivable balance on September 30 was $86,000 Prepare a schedule of cash collections from sales for October, November, and December Round all calculations to the nearest whole dollar. OfficeMart Inc. Schedule of Cash Collections from Sales For the Three Months Ending December 31 October Line Item Description 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: Collected in November Collected in December December sales on account: Collected in December Total cash receipts 000 32,000 110 November December 41000 54,300 000

OfficeMart Inc. has "cash and carry customers and credit customers. OfficeMart estimates that 25% of monthly sales are to cash customers, while the remaining sales are to credit customers. Of the credit custom 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 are as follows: October $128,000 November 160,000 December 234,000 The Accounts Receivable balance on September 30 was $86,000 Prepare a schedule of cash collections from sales for October, November, and December Round all calculations to the nearest whole dollar. OfficeMart Inc. Schedule of Cash Collections from Sales For the Three Months Ending December 31 October Line Item Description 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: Collected in November Collected in December December sales on account: Collected in December Total cash receipts 000 32,000 110 November December 41000 54,300 000

FINANCIAL ACCOUNTING
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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OfficeMart Inc. has "cash and carry" customers and credit customers, OfficeMart estimates that 25% of monthly sales are to cash customers, while the remaining sales are to credit customers. Of the credit custom 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 are as follows: October November December $128,000 160,000 234,000 The Accounts Receivable balance on September 30 was $86,000. Prepare a schedule of cash collections from sales for October, November, and December Round all calculations to the nearest whole dollar. OfficeMart Inc. Schedule of Cash Collections from Sales For the Three Months Ending December 31 Line Item Description 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: Collected in November Collected in December December sales on account: Collected in December Total cash receipts Check My Work October November December 000 32,000 40,000 10 00 38,500 Previous Next >
Transcribed Image Text:OfficeMart Inc. has "cash and carry" customers and credit customers, OfficeMart estimates that 25% of monthly sales are to cash customers, while the remaining sales are to credit customers. Of the credit custom 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 are as follows: October November December $128,000 160,000 234,000 The Accounts Receivable balance on September 30 was $86,000. Prepare a schedule of cash collections from sales for October, November, and December Round all calculations to the nearest whole dollar. OfficeMart Inc. Schedule of Cash Collections from Sales For the Three Months Ending December 31 Line Item Description 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: Collected in November Collected in December December sales on account: Collected in December Total cash receipts Check My Work October November December 000 32,000 40,000 10 00 38,500 Previous Next >
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