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Pampered Pal Inc., a pet supplies distributor, was organized on January 1. Projected sales for each of the first three months of operations are as
Pampered Pal Inc., a pet supplies distributor, was organized on January 1. Projected sales for each of the first three months of operations are as follows:
Month | Amount |
---|---|
January | $160,000 |
February | 240,000 |
March | 320,000 |
All sales are on account. Collections are expected as follows: 50% of sales are expected to be collected in the month of the sale, 45% 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 January, February, and March.
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