Trapp Co. was organized on August 1 of the current year. Projected sales for the next three months are as follows: August sales 100,000 September sales 185,000 October sales 225,000 The company expects to sell 40% of its merchandise for cash. Of the sales on account (credit sales), 33% are to be collected in the month of sale 50% are to be collected in the month after the sale 17% are to be collected two months after the sale Required: Prepare a schedule indicating cash collections for August, September, and October. Trapp Co. Schedule of Cash Collections August September October August September October Total Cash Collections

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 14EA: Halifax Shoes has 30% of its sales in cash and the remainder on credit. Of the credit sales, 65% is...

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Trapp Co. was organized on August 1 of the current year. Projected sales for the next
three months are as follows:

	August sales		100,000
	September sales		185,000
	October sales		225,000


The company expects to sell 40% of its merchandise for cash. Of the sales on account (credit sales),

	33% are to be collected in the month of sale
	50% are to be collected in the month after the sale
	17% are to be collected two months after the sale

Required: Prepare a schedule indicating cash collections for August, September, and October.

			Trapp Co.
	Schedule of Cash Collections

		August		September	October

August




September



October


Total Cash Collections

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