Star Co. was organized on August 1 of the current year. Projected sales for the next three months are as follows: August $250,000 September 200,000 October 275,000 The company expects to sell 50% of its merchandise for cash. Of the sales on account, 30% are expected to be collected in the month of the sale and the remainder in the following month. Prepare a schedule indicating cash collections for August, September, and October. Star Co. Schedule of Collections from Sales For the Three Months Ending October 31 August September October Sales $250,000 $200,000 $275,000 Cash sales Credit sales Collections of accounts receivable: August credit sales September credit sales October credit sales Cash sales Total collections

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Star Co. was organized on August 1 of the current year. Projected sales for the next three months are as follows:
August
$250,000
September
200,000
October
275,000
The company expects to sell 50% of its merchandise for cash. Of the sales on account, 30% are expected to be collected in the month of the sale and the remainder in the following month.
Prepare a schedule indicating cash collections for August, September, and October.
Star Co.
Schedule of Collections from Sales
For the Three Months Ending October 31
August
September
October
Sales
$250,000
$200,000
$275,000
Cash sales
Credit sales
Collections of accounts receivable:
August credit sales
September credit sales
October credit sales
Cash sales
Total collections
Transcribed Image Text:Star Co. was organized on August 1 of the current year. Projected sales for the next three months are as follows: August $250,000 September 200,000 October 275,000 The company expects to sell 50% of its merchandise for cash. Of the sales on account, 30% are expected to be collected in the month of the sale and the remainder in the following month. Prepare a schedule indicating cash collections for August, September, and October. Star Co. Schedule of Collections from Sales For the Three Months Ending October 31 August September October Sales $250,000 $200,000 $275,000 Cash sales Credit sales Collections of accounts receivable: August credit sales September credit sales October credit sales Cash sales Total collections
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