Schedule of cash collections of accounts

Question

Schedule of Cash Collections of Accounts Receivable

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

May   $126,000

June   $145000

July     $162000

The company expects to sell 10% of its merchandise for cash. Of sales on account, 60% 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.

Hide Hint(s) Prepare a schedule indicating cash collections from sales for May, June, and July. PetCare Supplies Inc. Schedule of Collections from Sales For the Three Months Ending July 31, 2014 May June July Receipts from cash sales: Cash sales $   $   $   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 $   $   $