Innovative Office Inc has cash and carry customers and

credit #8919

Innovative Office Inc. has “cash and carry” customers and credit customers. Innovative Office
estimates that 30% of monthly sales are to cash customers, while the remaining sales are to
credit customers. Of the credit customers, 75% pay their accounts in the month of sale, while
the remaining 25% pay their accounts in the month following the month of sale. Projected sales
for the first three months of 2013 are as follows:
January $1,200,000
February 1,450,000
March 1,600,000

The Accounts Receivable balance on December 31, 2012, was $180,000.

Prepare a schedule of cash collections from sales for January, February, and March.

Innovative Office Inc has cash and carry customers and credit

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