Schedule of Cash Collections of Accounts ReceivableFurry 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$300,000June370,000July530,000All sales are on account. 53 percent of sales are expected to be collected in the month of the sale, 36% in the month following the sale, and the remainder in the second month following the sale.Prepare a schedule indicating cash collections from sales for May, June, and July.Furry Friends Supplies Inc.Schedule of Collections from SalesFor the Three Months Ending May 31 MayJuneJulyMay sales on account: Collected in Mayfill in the blank 1 Collected in June fill in the blank 2 Collected in July fill in the blank 3June sales on account: Collected in June fill in the blank 4 Collected in July fill in the blank 5July sales on account: Collected in July fill in the blank 6Total cash collected$fill in the blank 7$fill in the blank 8$fill in the blank 9

Amount collected in same month = Sales x 53% Amount collected in next month = Sales x 36% Amount…

Answered: Furry Friends Supplies Inc., a pet…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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	$300,000
June	370,000
July	530,000

All sales are on account. 53 percent of sales are expected to be collected in the month of the sale, 36% 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.

Furry Friends Supplies Inc.
Schedule of Collections from Sales
For the Three Months Ending May 31
	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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