Schedule of Cash Collections of Accounts Receivable Pet Stop 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 $320,000 June 400,000 July 530,000 All sales are on account. Of sales on account, 60% are expected to be collected in the month of the sale, 36% 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 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 $ $ $
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Schedule of Cash Collections of
Pet Stop 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 | $320,000 |
| June | 400,000 |
| July | 530,000 |
All sales are on account. Of sales on account, 60% are expected to be collected in the month of the sale, 36% 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 | |||
| 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 | $ | $ | $ |
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
