In: Accounting
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 | $290,000 |
June | 370,000 |
July | 530,000 |
All sales are on account. 60 percent of sales are expected to be collected in the month of the sale, 28% 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. |
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Schedule of Collections from Sales |
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For the Three Months Ending May 31 |
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May |
June |
July |
|
May sales on account: |
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Collected in May |
$ 174,000.00 |
||
Collected in June |
$ 81,200.00 |
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Collected in July |
$ 34,800.00 |
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June sales on account: |
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Collected in June |
$ 222,000.00 |
||
Collected in July |
$ 103,600.00 |
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July sales on account: |
|||
Collected in July |
$ 318,000.00 |
||
Total cash collected |
$ 174,000.00 |
$ 303,200.00 |
$ 456,400.00 |
----Working for above figures:
Furry Friends Supplies Inc. |
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Schedule of Collections from Sales |
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For the Three Months Ending May 31 |
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May |
June |
July |
|
May sales on account: |
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Collected in May |
=290000*60% |
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Collected in June |
=290000*28% |
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Collected in July |
=290000*12% |
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June sales on account: |
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Collected in June |
=370000*60% |
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Collected in July |
=370000*28% |
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July sales on account: |
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Collected in July |
=530000*60% |
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Total cash collected |
Total cash collected |
Total cash collected |
Total cash collected |