In: Accounting
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 | $300,000 |
June | 340,000 |
July | 510,000 |
All sales are on account. 53 percent of sales 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.
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 | $ | $ | $ |
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 | $ 1,59,000.00 | ||
Collected in June | $ 1,05,000.00 | ||
Collected in July | $ 36,000.00 | ||
June sales on account: | |||
Collected in June | $ 1,80,200.00 | ||
Collected in July | $ 1,19,000.00 | ||
July sales on account: | |||
Collected in July | $ 2,70,300.00 | ||
Total cash collected | $ 1,59,000.00 | $ 2,85,200.00 | $ 4,25,300.00 |
Working
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 | =300000*53% | ||
Collected in June | =300000*35% | ||
Collected in July | =300000*12% | ||
June sales on account: | |||
Collected in June | =340000*53% | ||
Collected in July | =340000*35% | ||
July sales on account: | |||
Collected in July | =510000*53% |