Prepare a schedule indicating cash collections from sales

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Reference no: EM131975066

Problem

Schedule of Cash Collections of Accounts Receivable

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

March $340,000
April 370,000
May 490,000

The company expects to sell 11% of its merchandise for cash. Of sales on account, 56% are expected to be collected in the month of the sale, 39% 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 March, April, and May.

Reference no: EM131975066

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