Question

# Furry Friends Supplies Inc., a pet wholesale supplier, was organized on May 1. Projected sales for...

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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