Question - Pet Joy Wholesale inc., a pet whosale supplier, was organized on May1, 2010. Projected sales for each of the first three months of operation are as follows:
May 360,000
June 450,000
July 600,000
The company expects to sell 10% of its merchandise for cash. Of sales on account, 50% 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, July.
How much cash will be collected in May?
How much cash will be collected in June?
How much cash will be collected in July?