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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 $160,000
June 230,000
July 330,000
All sales are on account. 56 percent of sales are expected to be collected in the month of the sale, 33% in the month following the sale, and the remainder in the second month following the sale.
Problem 1: Prepare a schedule indicating cash collections from sales for May, June, and July.
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