Question
This is all ONE questions as per Chegg guidelines. 1. Part A Schedule of Cash Collections of Accounts Receivable Furry Friends Supplies Inc., a pet
This is all ONE questions as per Chegg guidelines.
1. Part A
Schedule of Cash Collections of Accounts Receivable
Furry Friends Supplies Inc., a pet wholesale supplier, was organized on May 1. Projected sales for each of the first three months of operations are as follows:
May | $230,000 |
June | 270,000 |
July | 350,000 |
All sales are on account. 54 percent of sales are expected to be collected in the month of the sale, 34% 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 May, June, and July.
Furry Friends Supplies Inc. | |||
Schedule of Collections from Sales | |||
For the Three Months Ending May 31 | |||
May | June | July | |
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 | $ | $ | $ |
Part B
Schedule of Cash Payments for a Service Company
SafeMark Financial Inc. was organized on February 28. Projected selling and administrative expenses for each of the first three months of operations are as follows:
March | $157,800 |
April | 146,800 |
May | 133,600 |
Depreciation, insurance, and property taxes represent $33,000 of the estimated monthly expenses. The annual insurance premium was paid on February 28, and property taxes for the year will be paid in June. 65% of the remainder of the expenses are expected to be paid in the month in which they are incurred, with the balance to be paid in the following month.
Prepare a schedule indicating cash payments for selling and administrative expenses for March, April, and May.
SafeMark Financial Inc. | |||
Schedule of Cash Payments for Selling and Administrative Expenses | |||
For the Three Months Ending May 31 | |||
March | April | May | |
March expenses: | |||
Paid in March | $ | ||
Paid in April | $ | ||
April expenses: | |||
Paid in April | |||
Paid in May | $ | ||
May expenses: | |||
Paid in May | |||
Total cash payments | $ | $ | $ |
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