Question

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 $210,000 June 300,000 July 430,000 All sales are on account. 51 percent of sales are expected to be collected in the month of the sale, 39% 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 $ $ $

Answer 1

Solution

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	$ 107,100
Collected in June		$ 81,900
Collected in July			$ 21,000
June sales on account:
Collected in June		$ 153,000
Collected in July			$ 117,000
July sales on account:
Collected in July			$ 219,300
Total cash collected	$ 107,100	$ 234,900	$ 357,300

.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	=210000*51%
Collected in June		=210000*39%
Collected in July			=210000*10%
June sales on account:
Collected in June		=300000*51%
Collected in July			=300000*39%
July sales on account:
Collected in July			=430000*51%