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ZMart Inc. estimates that 20% of its monthly sales are to cash customers, while the...

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ZMart Inc. estimates that 20% of its monthly sales are to cash customers, while the remaining sales are to credit customers. Of the credit customers, 30% pay their accounts in the month of sale, while the remaining 70% pay their accounts in the month following the month of sale. Projected sales for the next three months are as follows: October November December Total sales 150,000 180,000 210,000 The Accounts Receivable balance on September 30 was $67,200. Required: A. Prepare a cash collection schedule for October, November and December. B. Determine the amount of Account receivable to be reported in the Balance Sheet as at December 31 20Y1. Solution: A. Zmart Inc. Cash Receipt Schedule for the Three months Ending December 31 20Y1 October November December Receipt from cash sales ? ? ? ? ? ? September sales on account: Collected in October October sales on account: Collected in October Collected in November November sales on account: Collected in November Collected in December December sales on account: Collected in December Total cash receipts ? ? ? ? ? ? B. Account receivable to be reported in the Balance Sheet as at December 31 2011

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