Furry Friends Supplikes ec., a pet wholesale supplies, was organized on May 1. P
ID: 2404481 • Letter: F
Question
Furry Friends Supplikes ec., a pet wholesale supplies, was organized on May 1. Projected sales for each of the first three months of operations are as follows May June July Al sales are on account. Severny percent cf sales are expected to bec ected in the month ofthe sle 25% in the month foliving the sale, and the remainder in the second month follealng th Prepare a schedule idating cash collect ens from sales for May, June, and kdy, Enter aa aneunts as poitive numbers. $136,000 175,000 180,000 Furry Friends Supplies Inc. Schedule of Collections from Sale For the Three Months Ending July 31 May sales on acout Collected in May Collected in June Collected in July June sales on account Collected in June Collected in JulyExplanation / Answer
Furry Friends Supplies Inc.
Schedule of Collection from Sales
For the Three Month Ending July 31
May
June
July
May sales on accounts
Collected in May
$ 109,200
Collected in June
$ 39,000
Collected in July
$ 7,800
June sales on accounts
Collected in June
$ 122,500
Collected in July
$ 43,750
July sales on accounts
Collected in July
$ 126,000
Total
$ 109,200
$ 161,500
$ 177,550
Explanation:
Sales collection in May = May credit sales x 0.7 = $ 156,000 x 0.7 = $ 109,200
Sales collection in June = May credit sales x 0.25 + June credit sales x 0.7
= $ 156,000 x 0.25 + $ 175,000 x 0.7
= $ 39,000 + $ 122,500 = $ 161,500
Sales collection in July = May credit sales x 0.05 + June credit sales x 0.25 + July credit sales x 0.7
= $ 156,000 x 0.05 + $ 175,000 x 0.25 + $ 180,000 x 0.7
= $ 7,800 + $ 43,750 + $ 126,000 = $ 177,550
Furry Friends Supplies Inc.
Schedule of Collection from Sales
For the Three Month Ending July 31
May
June
July
May sales on accounts
Collected in May
$ 109,200
Collected in June
$ 39,000
Collected in July
$ 7,800
June sales on accounts
Collected in June
$ 122,500
Collected in July
$ 43,750
July sales on accounts
Collected in July
$ 126,000
Total
$ 109,200
$ 161,500
$ 177,550
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