Schedule of cash collections of accounts receivable

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 $210,000$

March $320,000$

All sales are on account. Collections are expected as follows: $51\%$ 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.

Pampered Pal Inc.

Schedule of Cash Collections from Sales

For the Three Months Ending March $31$

Line Item Description January February March

January sales on account:

Collected in January $Collected in January

$199,800$

Collected in February $Collected in February

$155,400$

Collected in March $Collected in March

$14,800$

February sales on account:

Collected in February Collected in February

$216,000$

Collected in March Collected in March

$168,000$

March sales on account:

Collected in March Collected in March

$313,200$

Total cash collected $Total cash collected

$199,800$

$Total cash collected

$371,400$

$Total cash collected

$496,000$

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