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Problem - Schedule of cash collections of accounts receivable
Pet Mart Wholesale Inc., a pet wholesale supplier, was organized on March 1, 2012. Projected sales for each of the first three months of operations are as follows:
March $90,000
April 150,000
May 240,000
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.
Required - Prepare a schedule indicating cash collections from sales for March, April, and May.
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