Schedule of Cash Collections of Accounts Receivable
PetCare Supplies Inc., a pet wholesale supplier, was organized on May 1, 2014. Projected sales for each of the first three months of operations are as follows:
May $126,000
June $145000
July $162000
The company expects to sell 10% of its merchandise for cash. Of sales on account, 60% are expected to be collected in the month of the sale, 35% in the month following the sale, and the remainder in the second month following the sale.
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Prepare a schedule indicating cash collections from sales for May, June, and July.
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Schedule of Collections from Sales
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For the Three Months Ending July 31, 2014
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Receipts from cash sales:
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