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 $170,000 June 220,000 July 290,000 All sales are on account. 57 percent of sales are expected to be collected in the month of the sale, 31% 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.
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 $170,000 June 220,000 July 290,000 All sales are on account. 57 percent of sales are expected to be collected in the month of the sale, 31% 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.
Chapter7: Budgeting
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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 | $170,000 |
June | 220,000 |
July | 290,000 |
All sales are on account. 57 percent of sales are expected to be collected in the month of the sale, 31% 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
$4
$4
%24
%24
%24](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa57c9261-be87-4739-9b11-83c401f4f7d1%2F8a31b8f6-a4f6-40c1-aacd-a13a24250601%2F9prx7x_processed.png&w=3840&q=75)
Transcribed Image Text: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
$4
$4
%24
%24
%24
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