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OfficeMart Inc. has "cash and carry" customers and credit customers. OfficeMart 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 $109,000
November 136,000
December 199,000

The Accounts Receivable balance on September 30 was $73,000.

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 November December Rec

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OFFICEMART INC.
Schedule of cash collections from sales
For the three months ending December 31
Particulars October November December
$ $ $
Projected monthly sales $ (a) 109000 136000 199000
Cash sales (b= 20%*a) 21800 27200 39800
Credit Sales (80%*a) 87200 108800 159200
Cash Receipts from Customers:
September sales on account:-
Collected in October 73000
October sales on account:-
Collected in October $87200*20%= 17440
Collected in November $87200*80%= 69760
November sales on account:-
Collected in November 108800*20%= 21760
Collected in December 108800*80%= 87040
December sales on account:-
Collected in December 159200*20%= 31840
Total cash collection $ (c) 90440 91520 118880
Total cash receipts (d=b+c) 112240 118720 158680
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