Question
Schedule of Cash Collections of Accounts Receivable PetJoy Wholesale Inc., a pet wholesale supplier, was organized on March 1, 2016. Projected sales for each of
Schedule of Cash Collections of Accounts Receivable
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 | $360,000 |
| April | 500,000 |
| May | 670,000 |
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, 37% 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 Cash Collections | |||
| For the Three Months Ending May 31, 2016 | |||
|
| March | April | May |
| Receipts from cash sales: |
|
|
|
| Cash sales | $ fill in the blank 1 | $ fill in the blank 2 | $ fill in the blank 3 |
| March sales on account: |
|
|
|
| Collected in March | fill in the blank 4 |
|
|
| Collected in April |
| fill in the blank 5 |
|
| Collected in May |
|
| fill in the blank 6 |
| April sales on account: |
|
|
|
| Collected in April |
| fill in the blank 7 |
|
| Collected in May |
|
| fill in the blank 8 |
| May sales on account: |
|
|
|
| Collected in May |
|
| fill in the blank 9 |
| Total cash collected | $ fill in the blank 10 | $ fill in the blank 11 | $ fill in the blank 12 |
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Auditing Cases An Interactive Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
6th edition
133852105, 978-0133852103
