Question
Schedule of Cash Collections of Accounts Receivable Pet Supplies Inc., a pet wholesale supplier, was organized on January 1. Projected sales for each of the
Schedule of Cash Collections of Accounts Receivable
Pet Supplies Inc., a pet wholesale supplier, was organized on January 1. Projected sales for each of the first three months of operations are as follows:
| January | $220,000 |
| February | 330,000 |
| March | 470,000 |
All sales are on account. 50% of sales are expected to be collected in the month of the sale, 46% 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.
| January | February | March | |
| January sales on account: | |||
| Collected in January | $fill in the blank 1 | ||
| Collected in February | $fill in the blank 2 | ||
| Collected in March | $fill in the blank 3 | ||
| February sales on account: | |||
| Collected in February | fill in the blank 4 | ||
| Collected in March | fill in the blank 5 | ||
| March sales on account: | |||
| Collected in March | fill in the blank 6 | ||
| Total cash collected | $fill in the blank 7 | $fill in the blank 8 | $fill in the blank 9 |
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Financial Accounting
Authors: David Spiceland
6th Edition
1265889716, 978-1265889715
