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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 | $260,000 |
April | 350,000 |
May | 480,000 |
The company expects to sell 11% of its merchandise for cash. Of sales on account, 59% are expected to be collected in the month of the sale, 36% 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.
PetJoy Wholesale Inc. | |||
Schedule of Collections from Sales | |||
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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