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 | $210,000 |
June | 250,000 |
July | 360,000 |
All sales are on account. 50 percent of sales are expected to be collected in the month of the sale, 38% 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 | $ | $ | $ |
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 | 105000 | ||
Collected in June | 79800 | ||
Collected in July | 25200 | ||
June sales on account: | |||
Collected in June | 250000*50% = 125000 | ||
Collected in July | 250000*38% = 95000 | ||
July sales on account: | |||
Collected in July | 360000*50% = 180000 | ||
Total cash collected | $105000 | $204800 | $300200 |
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