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Schedule of Cash Collections PetJoy Wholesale Inc., a pet wholesale supplier, was organized on March 1, 2016. Projected sales for each of the first three
Schedule of Cash Collections
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 | $150,000 |
| April | 160,000 |
| May | 240,000 |
The company expects to sell 10% of its merchandise for cash. Of sales on account, 56% are expected to be collected in the month of the sale, 40% 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 | $ | $ | $ |
| March sales on account: | |||
| Collected in March | |||
| Collected in April | |||
| Collected in May | |||
| April sales on account: | |||
| Collected in April | |||
| Collected in May | |||
| May sales on account: | |||
| Collected in May | |||
| Total cash collected | $ | $ | $ |
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