Question

1. 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	$200,000
   February	290,000
   March	400,000

   All sales are on account. 55% of sales are expected to be collected in the month of the sale, 41% 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.

   Pet Supplies Inc.
   Schedule of Cash Collections from Sales
   For the Three Months Ending March 31
   	January	February	March
   January sales on account:
   Collected in January	$
   Collected in February		$
   Collected in March			$
   February sales on account:
   Collected in February
   Collected in March
   March sales on account:
   Collected in March
   Total cash collected	$	$	$

Answer 1

January February March 110000 820001 8000 Cash collection from sales Particulars January sales on account Collected in January Collected in February Collected in March February sales on account Collected in February Collected in March March sales on account Collected March Total cash collected 159500 1189001 220000 346900 1100001 241500