Prepare a schedule indicating cash collections

Question

PetJoy Wholesale Inc., a pet wholesale supplier, was organized on March 1, 2014. Projected sales for each of the first three months of operations are as follows:

March	$350,000
April	410,000
May	610,000

The company expects to sell 12% of its merchandise for cash. Of sales on account, 52% are expected to be collected in the month of the sale, 44% in the month following the sale, and the remainder in the second month following the sale.

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Prepare a schedule indicating cash collections from sales for March, April, and May.

PetJoy Wholesale Inc.
Schedule of Collections from Sales
For the Three Months Ending May 31, 2014
		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		$		$		$