Office World Inc. has "cash and carry" customers and credit customers. Office World estimates that 25% of monthly sales are to cash customers, while the remaining sales are to credit customers. Of the credit customers, 25% pay their accounts in the month of sale, while the remaining 75% pay their accounts in the month following the month of sale. Projected sales for the next three months are as follows:
October $700,000
November $65,000
December $500,000
The Accounts Receivable balance on September 30 was $290,000.
Required:
Prepare a schedule of cash collections from sales for October, November, and December.
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