Question
Fur Family Inc., a pet wholesale supplier, was organized on May 1. Projected sales for each of the first three months of operations are as
Fur Family 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 | $610,000 |
| June | 850,000 |
| July | 1,590,000 |
All sales are on account. Of sales on account, 59% are expected to be collected in the month of the sale, 26% in the first month following the sale, and the remainder in the second month following the sale.
Prepare schedule indicating cash collections from sales for May, June, and July.
| FUR FAMILY INC. | ||||||
| Schedule of Collections from Sales | ||||||
| For the Three Months Ending July 31 | ||||||
| May | June | July | ||||
| May sales on account: | ||||||
| Collected in May | $ fill in the blank 2 | |||||
| Collected in June | fill in the blank 3 | |||||
| Collected in July | fill in the blank 4 | |||||
| June sales on account: | ||||||
| Collected in June | fill in the blank 5 | |||||
| Collected in July | fill in the blank 6 | |||||
| July sales on account: | ||||||
| Collected in July | fill in the blank 7 | |||||
| Total cash collected | $ fill in the blank 8 | $ fill in the blank 9 | $ fill in the blank 10 |
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Financial And Managerial Accounting For MBAs
Authors: Peter D. Easton
6th Edition
1618533592, 9781618533593
