Schedule of Cash Collections PetJoy Wholesale Inc., a pet wholesale supplier, wa
ID: 2413434 • Letter: S
Question
Schedule of Cash Collections
PetJoy Wholesale Inc., a pet wholesale supplier, was organized on March 1, 2016. Projected sales for each of the first three months of operations are as follows:
The company expects to sell 10% of its merchandise for cash. Of sales on account, 51% are expected to be collected in the month of the sale, 44% 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 March, April, and May.
March $170,000 April 240,000 May 350,000Explanation / Answer
PetJoy Wholesale Inc.
Schedule of Cash Collections
For the Three Months Ending May 31, 2016
March
April
May
Receipts from cash sales:
Cash sales
($170,000*10%)
$ 17,000.00
($240,000*10%)
$ 24,000.00
($350,000*10%)
$ 35,000.00
March sales on account:
Collected in March
($170,000*90%*51%)
$ 78,030.00
Collected in April
($170,000*90%*44%)
$ 67,320.00
Collected in May
($170,000*90%*5%)
$ 7,650.00
April sales on account:
Collected in April
($240,000*90%*51%)
$ 110,160.00
Collected in May
($240,000*90%*44%)
$ 95,040.00
May sales on account:
Collected in May
($350,000*90%*51%)
$ 160,650.00
Total cash collected
$ 95,030.00
$ 201,480.00
$ 298,340.00
PetJoy Wholesale Inc.
Schedule of Cash Collections
For the Three Months Ending May 31, 2016
March
April
May
Receipts from cash sales:
Cash sales
($170,000*10%)
$ 17,000.00
($240,000*10%)
$ 24,000.00
($350,000*10%)
$ 35,000.00
March sales on account:
Collected in March
($170,000*90%*51%)
$ 78,030.00
Collected in April
($170,000*90%*44%)
$ 67,320.00
Collected in May
($170,000*90%*5%)
$ 7,650.00
April sales on account:
Collected in April
($240,000*90%*51%)
$ 110,160.00
Collected in May
($240,000*90%*44%)
$ 95,040.00
May sales on account:
Collected in May
($350,000*90%*51%)
$ 160,650.00
Total cash collected
$ 95,030.00
$ 201,480.00
$ 298,340.00
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