Answer and Explanation:
The preparation of the schedule of cash collections from sales for October, November, and December is presented below:
Particulars October November December
Sales $58,000 $65,000 $72,000
Cash sales $14,500 $16,250 $18,000
($58,000 × 0.25) ($65000 × 0.25) ($72,000 ×.25
)
Credit sale $43,500 $48,750 $54,000
($58,000 - $14,500)
September account receivable $35,000
current month payment
October credit sale: $13,050 $30,450
($43,500 × 30%) (43500 ×70%)
November credit sale $14,625 $34,125
($48,750 × 30%) (48750 × 70%
)
December credit sale: $16,200
($54,000 × 30%
)
Total cash collected $62,550 $61,325 $68,325
($14,500 + $35,000 + $13,050) ($16,250 + $30,450 + $14,625) ($18,000 + $34,125 + $16,200)
