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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 | $400,000 |
| February | 600,000 |
| March | 850,000 |
All sales are on account. Collections are expected as follows: 75% of sales are expected to be collected in the month of the sale, 15% 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. Enter all amounts as positive numbers.
| Line Item Description | January | February | March |
|---|---|---|---|
| January sales on account: | |||
| Collected in January | $Collected in January | ||
| Collected in February | $Collected in February | ||
| Collected in March | $Collected in March | ||
| February sales on account: | |||
| Collected in February | Collected in February | ||
| Collected in March | Collected in March | ||
| March sales on account: | |||
| Collected in March | Collected in March | ||
| Total cash collected | $Total cash collected | $Total cash collected | $Total cash collected |
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