Schedule of Cash Collections of Accounts Receivable Furry Friends Supplies Inc.,
ID: 2431636 • Letter: S
Question
Schedule of Cash Collections of Accounts Receivable
Furry Friends 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:
All sales are on account. 60 percent of sales are expected to be collected in the month of the sale, 28% 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.
May $290,000 June 370,000 July 530,000Explanation / Answer
Answers
Furry Friends Supplies Inc.
Schedule of Collections from Sales
For the Three Months Ending May 31
May
June
July
May sales on account:
Collected in May
$ 174,000.00
Collected in June
$ 81,200.00
Collected in July
$ 34,800.00
June sales on account:
Collected in June
$ 222,000.00
Collected in July
$ 103,600.00
July sales on account:
Collected in July
$ 318,000.00
Total cash collected
$ 174,000.00
$ 303,200.00
$ 456,400.00
----Working for above figures:
Furry Friends Supplies Inc.
Schedule of Collections from Sales
For the Three Months Ending May 31
May
June
July
May sales on account:
Collected in May
=290000*60%
Collected in June
=290000*28%
Collected in July
=290000*12%
June sales on account:
Collected in June
=370000*60%
Collected in July
=370000*28%
July sales on account:
Collected in July
=530000*60%
Total cash collected
Total cash collected
Total cash collected
Total cash collected
Furry Friends Supplies Inc.
Schedule of Collections from Sales
For the Three Months Ending May 31
May
June
July
May sales on account:
Collected in May
$ 174,000.00
Collected in June
$ 81,200.00
Collected in July
$ 34,800.00
June sales on account:
Collected in June
$ 222,000.00
Collected in July
$ 103,600.00
July sales on account:
Collected in July
$ 318,000.00
Total cash collected
$ 174,000.00
$ 303,200.00
$ 456,400.00
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