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PetJoy Wholesale Inc., a pet wholesale supplier, was organized on March 1, 2016. Projected sales for each of the first three months of operations are

PetJoy Wholesale Inc., a pet wholesale supplier, was organized on March 1, 2016. Projected sales for each of the first three months of operations are as follows:

March $280,000
April 360,000
May 520,000

The company expects to sell 12% of its merchandise for cash. Of sales on account, 52% are expected to be collected in the month of the sale, 43% 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 March, April, and May.

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Petoy Wholesale Inc. Schedule of Cash Collections For the Three Months Ending May 31, 2016 March April May Receipts from cash sales: Cash sales March sales on account: Collected in March Collected in April Collected in May April sales on account: Collected in April Collected in May May sales on account: Collected in May ) Total cash collected

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