http//cxp.cengage.com/acti spid-51bb.. Schedule of Cash Collections of Accounts

Question

http//cxp.cengage.com/acti spid-51bb.. 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 $230,000 June 260,000 July 380,000 All sales are on account, or sales on account, 54% are expected to be collected in the month of the sale, 42% 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. Pet Place Supplies Inc. Schedule of Cash Collections from Sales For the Three Months Ending July 31 May JuneJuly May sales on account: Collected in May Collected in June Collected in July April sales on account Collected in June Collected in July July sales on account: Collected in July Total cash collected

Explanation / Answer

Schedule of expected cash collection :

May June July May sales on account Collected in may 124200 Collected in june 96600 Collected in july 9200 June sales account Collected in june 140400 Collected in july 109200 July Sales on account Collected in july 205200 Total cash collected 124200 237000 323600

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