Question

Schedule of Cash Collections of Accounts Receivable Pet Place Supplies Inc., a pet wholesale supplier, was organized on May 1. Projected sales for each of the first three months of operations are as follows: May $134,000 June 155,000 July 169,000 All sales are on account. Sixty-five percent of sales are expected to be collected in the month of the sale, 30% in the month following the sale, and the remainder in the second month following the sale. Prepare a schedule indicating cash collections from sales for May, June, and July. Enter all amounts as positive numbers.

Answer 1

Step-by-step explanation:

SCHEDULE OF CASH COLLECTIONS

MAY JUNE JULY AUG

Sales 134,000 155,00 169,000

65%. 87,100 100,750 109,850

30% 000 40,200 46,500 50,700

5%. 000 000 6,700. 7,750 8,459