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:

May	$340,000
June	400,000
July	530,000

All sales are on account. 54 percent of sales are expected to be collected in the month of the sale, 36% 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.

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
Collected in June
Collected in July
June sales on account:
Collected in June
Collected in July
July sales on account:
Collected in July
Total cash collected	$	$	$

Answer 1

Furry Friends Supplies Inc.
Schedule of collections from sale
For the three months ending may
	May	June	July
May sales on account	1,83,600
Collected in May
Collected in June		1,22,400
Collected in July			34,000
June sales on account		2,16,000
Collected in June
Collected in July		1,44,000
July sales of account			2,86,200
Collected in July
Total Cash Collected $	1,83,600	4,82,400	3,20,200