1. Schedule of Cash Collections of Accounts Receivable

   Furry Friends Supplies 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	$240,000
   June	300,000
   July	400,000

   All sales are on account. 54 percent of sales are expected to be collected in the month of the sale, 35% 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 May, June, and July.

   Furry Friends Supplies Inc.
   Schedule of Collections from Sales
   For the Three Months Ending May 31
   	May	June	July
   May sales on account:
   Collected in May
   Collected in June
   Collected in July
   June sales on account:
   Collected in June
   Collected in July
   July sales on account:
   Collected in July
   Total cash collected