Schedule of Cash Collections of Accounts Receivable

PetCare Supplies Inc., a pet wholesale supplier, was organized on May 1, 2014. Projected sales for each of the first three months of operations are as follows:

The company expects to sell 10% of its merchandise for cash. Of sales on account, 60% 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.

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Prepare a schedule indicating cash collections from sales for May, June, and July.

PetCare Supplies Inc.
Schedule of Collections from Sales
For the Three Months Ending July 31, 2014
May	June	July
Receipts from cash sales:
Cash sales	$	$	$
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	$	$	$