Question

10.

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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	$340,000
June	490,000
July	700,000

All sales are on account. Of sales on account, 57% 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.

Pet Place Supplies Inc.
Schedule of Cash Collections from Sales
For the Three Months Ending July 31
	May	June	July
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	$	$	$

Answer 1

I'm assuming that June sales should be there in place of april sales as no data regarding that is given:

Particulars	May($)	June($)	July($)
May sales on account	340,000
Collected in may	193,800
Collected in June		129,200
Collected in July			17,000
June sales on account		490,000
Collected in june		279,300
Collected in july			186,200
July sales on account			700,000
Collected in july			399,000
Total cash collected	193,800	408,500	602,200