Question

1. Schedule of Cash Collections of Accounts Receivable

   Pet Place 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	$330,000
   June	390,000
   July	520,000

   All sales are on account. Of sales on account, 51% are expected to be collected in the month of the sale, 45% 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.

   Pet Place Supplies Inc.
   Schedule of Cash Collections from Sales
   For the Three Months Ending July 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	$	$

Answer 1

Pet place supplies Inc.
Schedule of cash collections from sales	Amount in $
For the three Months Ending July 31
	May	June	July
May sales on account:
Collected in may	168,300
Collected in June	-	148,500
Collected in July			13,200
July sales on account :
Collected in June		198,900
Collected in July			175,500
July sales on account :
Collected in July			265,200
Total cash collected	168,300	347,400	453,900