Schedule of Cash Collections of Accounts Receivable Pet Supplies Inc., a pet wholesale supplier, was organized on January 1. Projected sales for each of the first three months of operations are as follows: January $300,000 February 500,000 March 750,000 All sales are on account. Seventy-five percent of sales are expected to be collected in the month of the sale, 20% 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 January, February, and March. Enter all amounts as positive numbers.
Schedule of Cash Collections of Accounts Receivable Pet Supplies Inc., a pet wholesale supplier, was organized on January 1. Projected sales for each of the first three months of operations are as follows: January $300,000 February 500,000 March 750,000 All sales are on account. Seventy-five percent of sales are expected to be collected in the month of the sale, 20% 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 January, February, and March. Enter all amounts as positive numbers.
Chapter7: Budgeting
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Schedule of Cash Collections of
Pet Supplies Inc., a pet wholesale supplier, was organized on January 1. Projected sales for each of the first three months of operations are as follows:
| January | $300,000 |
| February | 500,000 |
| March | 750,000 |
All sales are on account. Seventy-five percent of sales are expected to be collected in the month of the sale, 20% 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 January, February, and March. Enter all amounts as positive numbers.
Transcribed Image Text:Prepare a schedule indicating cash collections from sales for January, February, and March. Enter all amounts as positive numbers.
Pet Supplies Inc.
Schedule of Cash Collections from Sales
For the Three Months Ending March 31
January February
March
January sales on account:
Collected in January
Collected in February
Collected in March
February sales on account:
Collected in February
Collected in March
March sales on account:
Collected in March
Total cash collected
$4
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