Office World Inc. has "cash and carry" customers and credit customers. Office World estimates that 20% of monthly sales are to cash customers, while the remaining sales are to credit customers. Of the credit customers, 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 $117,000 November 146,000 December 214,000 The Accounts Receivable balance on September 30 was $78,000. Prepare a schedule of cash collections from sales for October, November, and December. Round all calculations to the nearest whole dollar.
Office World Inc. has "cash and carry" customers and credit customers. Office World estimates that 20% of monthly sales are to cash customers, while the remaining sales are to credit customers. Of the credit customers, 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 $117,000 November 146,000 December 214,000 The Accounts Receivable balance on September 30 was $78,000. Prepare a schedule of cash collections from sales for October, November, and December. Round all calculations to the nearest whole dollar.
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 20% of monthly sales are to cash customers, while the remaining sales are to credit customers. Of the credit customers, 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 | $117,000 |
| November | 146,000 |
| December | 214,000 |
The Accounts Receivable balance on September 30 was $78,000.
Prepare a schedule of cash collections from sales for October, November, and December. Round all calculations to the nearest whole dollar.
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Week 6 - Problem Assignment
еBook
Schedule of Cash Collections of Accounts Receivable
1. PE.22.01A
Office World Inc. has "cash and carry" customers and credit customers. Office World estimates that 20% of monthly sales are to cash
2. PE.22.02A
customers, while the remaining sales are to credit customers. Of the credit customers, 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:
3. PE.22.03A
October
$117,000
4. PE.22.04A
November
146,000
December
214,000
5. PE.22.05A
The Accounts Receivable balance on September 30 was $78,000.
6. PE.22.06A
Prepare a schedule of cash collections from sales for October, November, and December. Round all calculations to the nearest whole
dollar.
7. EX.22.01.ALGO
Office World Inc.
Schedule of Collections from Sales
8. EX.22.19.ALGO
For the Three Months Ending December 31
October
November
December
Receipts from cash sales:
Cash sales
21,200
26,600 X
38,800 X
September sales on account:
Collected in October
7,100
X
October sales on account:
Collected in October
21,200
X
Collected in November
63,600 X
November sales on account:
9:09 PM
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CengageNOWv2 | Online teachin x
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Week 6 - Problem Assignment
еBook
For the Three Months Ending December 31
1. PE.22.01A
October
November
December
Receipts from cash sales:
2. PE.22.02A
Cash sales
21,200
X
26,600
X
38,800 X
September sales on account:
3. PE.22.03A
Collected in October
7,100
4. PE.22.04A
October sales on account:
Collected in October
21,200
5. PE.22.05A
Collected
November
63,600 X
6. PE.22.06A
November sales on account:
Collected in November
26,600 X
7. EX.22.01.ALGO
Collected in December
December sales on account:
8. EX.22.19.ALGO
Collected in December
Total cash receipts
$4
$4
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Of the sales on account, note the percentages of the total that are expected to be collected in the month of the sale and in each of
the next two months.
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