Bark & Purr 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 $260,000 June 290,000 July 390,000 All sales are on account. 53 percent of sales are expected to be collected in the month of the sale, 37% 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.
Bark & Purr 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 $260,000 June 290,000 July 390,000 All sales are on account. 53 percent of sales are expected to be collected in the month of the sale, 37% 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Bark & Purr 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 | $260,000 |
| June | 290,000 |
| July | 390,000 |
All sales are on account. 53 percent of sales are expected to be collected in the month of the sale, 37% 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.
| May | June | July | |
| May sales on account: | |||
| Collected in May | $fill in the blank 1 | ||
| Collected in June | $fill in the blank 2 | ||
| Collected in July | $fill in the blank 3 | ||
| June sales on account: | |||
| Collected in June | fill in the blank 4 | ||
| Collected in July | fill in the blank 5 | ||
| July sales on account: | |||
| Collected in July | fill in the blank 6 | ||
| Total cash collected | $fill in the blank 7 | $fill in the blank 8 | $fill in the blank 9 |
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