Question

v2.cengagenow.com CengageNOWV2 Online teaching and learning resource from Cengage Learning Schedule of Cash Collection of Accounts Receiva Chapter 13 Homework (Application Book Cat Schedule of Cash Collections of Accounts Receivable Stop the pet wholesale supplier was organised on May 1 Projected sales for each of the first three months of operations are as follows: $310,000 June 380,000 July 550.000 Al sales are on account of sales on account, 58% are expected to be collected in the month of the sale in the first 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 STOP INC Schedule of Collections from Sales For the Three Months Ending July 31 June May sales on court Collected in May I 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 cocted SI Check My Work Calculate the cash collected from creditors in May, June, and July Check My Work All work saved A g ent Score: 125 MacBook Pro.

Answer 1

Solution:

The payment against the sales will be received in the following manner:

58% of sales amount - Received in the month of sales

38% of sales amount - Received in the following month of sales

4% of sales amount - Received in the second month following the month of sales

PET Shop Inc

Schedule of Collections from Sales

	May	June	July
May sales on account
Collected in May	179800 [310000*58%]
Collected in June		117800 [310000*38%]
Collected in July			12400 [310000*4%]
June Sales on Account
Collected in June		220400 [380000*58%]
Collected in July			144400 [380000*38%]
July Sales on Account
Collected in July			319000 [550000*58%]
Total Cash Collected	179800	338200	475800