Trapp CoWas Organized on August 1 of the Current Year $$\begin{array} { l r } \text { August } & \$ 100,000 \\\text { September } & 185,000 \\\text { October } & 225,000\end{array}$$

question 82

Essay

Trapp Co.was organized on August 1 of the current year.Projected sales for the next three months are as follows:
$$\begin{array} { l r } \text { August } & \$ 100,000 \\\text { September } & 185,000 \\\text { October } & 225,000\end{array}$$
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.

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