PetJoy Wholesale Inc., a pet wholesale supplier, was organized on March 1, 2016.
ID: 2567573 • Letter: P
Question
PetJoy Wholesale Inc., a pet wholesale supplier, was organized on March 1, 2016. Projected sales for each of the first three months of operations are as follows:
March $330,000
April 380,000
May 540,000
The company expects to sell 10% of its merchandise for cash. Of sales on account, 56% are expected to be collected in the month of the sale, 39% 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 March, April, and May.
PetJoy Wholesale Inc.
Schedule of Cash Collections
For the Three Months Ending May 31, 2016
March April May
Receipts from cash sales:
Cash sales $ $ $
March sales on account:
Collected in March
Collected in April
Collected in May
April sales on account:
Collected in April
Collected in May
May sales on account:
Collected in May
Total cash collected $ $ $
Explanation / Answer
PetJoy Wholesale Inc.
Schedule of Cash Collections
For the Three Months Ending May 31, 2016
March
April
May
Receipts from cash sales:
Cash sales
$ 33,000
$ 38,000
$ 54,000
March sales on account:
Collected in March
$ 166,320
Collected in April
$ 115,830
Collected in May
$ 14,850
April sales on account:
Collected in April
$ 191,520
Collected in May
$ 133,380
May sales on account:
Collected in May
$ 272,160
Total cash collected
$ 166,320
$ 307,350
$ 420,390
PetJoy Wholesale Inc.
Schedule of Cash Collections
For the Three Months Ending May 31, 2016
March
April
May
Receipts from cash sales:
Cash sales
$ 33,000
$ 38,000
$ 54,000
March sales on account:
Collected in March
$ 166,320
Collected in April
$ 115,830
Collected in May
$ 14,850
April sales on account:
Collected in April
$ 191,520
Collected in May
$ 133,380
May sales on account:
Collected in May
$ 272,160
Total cash collected
$ 166,320
$ 307,350
$ 420,390
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.