OfficeMart Inc. has “cash and carry” customers and credit customers. OfficeMart 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:MonthProjected salesApril$56,000May65,000June72,000 The Accounts Receivable balance on March 30 was $35,000. Prepare a schedule of cash collections from sales for April, May, and June.

A cash collection schedule means showing a pattern in which a business expects to collect cash from…

Answered: OfficeMart Inc. has “cash and carry”…

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 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:

Month	Projected sales
April	$56,000
May	65,000
June	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.

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