Trapp Co. was organized on August 1 of the current year. Projected sales for the next three months are as follows:
$\begin{array}{ll}
\$ 100,000 & \text { August } \
185,000 & \text { September } \
225,000 & \text { October }
\end{array}$
The company expects to sell 40% of its merchandise for cash. Of the sales on account, one third are expected to be collected in the month of the sale and the remainder in the following month.
Prepare a schedule indicating cash collections of accounts receivable for August, September, and October.

Question

Trapp Co. was organized on August 1 of the current year. Projected sales for the next three months are as follows:
 $\begin{array}{ll}
\$ 100,000 & \text { August } \
185,000 & \text { September } \
225,000 & \text { October }
\end{array}$
 The company expects to sell 40% of its merchandise for cash. Of the sales on account, one third are expected to be collected in the month of the sale and the remainder in the following month.
Prepare a schedule indicating cash collections of accounts receivable for August, September, and October.

Quizplus · Accepted Answer

The Answer of Trapp Co. was organized on August 1 of the current year. Projected sales for the next three months are as follows:
 $\begin{array}{ll}
\$ 100,000 & \text { August } \
185,000 & \text { September } \
225,000 & \text { October }
\end{array}$
 The company expects to sell 40% of its merchandise for cash. Of the sales on account, one third are expected to be collected in the month of the sale and the remainder in the following month.
Prepare a schedule indicating cash collections of accounts receivable for August, September, and October.

Trapp Co Was Organized on August 1 of the Current Year