Schedule of Cash Collections of Accounts ReceivablePet Supplies Inc., a pet wholesale supplier, was organized on January 1. Projected sales for each of the first three months of operations are as follows:January$300,000February500,000March750,000All sales are on account. Seventy-five percent of sales are expected to be collected in the month of the sale, 20% 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 January, February, and March. Enter all amounts as positive numbers. **Pet Supplies Inc.****Schedule of Cash Collections from Sales****For the Three Months Ending March 31**This schedule is designed to track the cash collections from sales over the first three months of the year - January, February, and March. Each month's sales and subsequent collections are recorded to monitor cash flow effectively.### January- **January sales on account:** - Collected in January: $[Amount] - Collected in February: $[Amount] - Collected in March: $[Amount] ### February- **February sales on account:** - Collected in February: $[Amount] - Collected in March: $[Amount]### March- **March sales on account:** - Collected in March: $[Amount]### Total Cash Collected- Total collected in January: $[Amount]- Total collected in February: $[Amount]- Total collected in March: $[Amount]This table helps in understanding the cash flow from sales for each month and aims to provide a comprehensive picture of the collection process. Each cell is meant to capture the actual cash collected for sales made in the respective period.

Collections are 75% in current month of sales, 20% in next month of sales and 5% in second month following the sales.

Answered: Schedule of Cash Collections of…

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

Pet Supplies Inc., a pet wholesale supplier, was organized on January 1. Projected sales for each of the first three months of operations are as follows:

January	$300,000
February	500,000
March	750,000

All sales are on account. Seventy-five percent of sales are expected to be collected in the month of the sale, 20% 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 January, February, and March. Enter all amounts as positive numbers.

**Pet Supplies Inc.**

**Schedule of Cash Collections from Sales**

**For the Three Months Ending March 31**

This schedule is designed to track the cash collections from sales over the first three months of the year - January, February, and March. Each month's sales and subsequent collections are recorded to monitor cash flow effectively.

### January
- **January sales on account:**
- Collected in January: $[Amount]
- Collected in February: $[Amount]
- Collected in March: $[Amount]

### February
- **February sales on account:**
- Collected in February: $[Amount]
- Collected in March: $[Amount]

### March
- **March sales on account:**
- Collected in March: $[Amount]

### Total Cash Collected
- Total collected in January: $[Amount]
- Total collected in February: $[Amount]
- Total collected in March: $[Amount]

This table helps in understanding the cash flow from sales for each month and aims to provide a comprehensive picture of the collection process. Each cell is meant to capture the actual cash collected for sales made in the respective period.

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