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Chapter 21 Assignment Schedule of Cash Collections of Accounts Receivable Pet Pl

ID: 2581254 • Letter: C

Question

Chapter 21 Assignment Schedule of Cash Collections of Accounts Receivable Pet Place 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 June uly All sales are on account. Of sales on account, 57% are expected to be collected in the month of the sale, 39% 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 $250,000 380,000 500,000 Pet Place Supplies Inc. Schedule of Collections from Sales For the Three Months Ending July 31 May July June May sales on account Collected in May Collected in June Collected in July April sales on account: Collected in June Collected in July July sales on account: Collected in July 142,500 Total cash collected 142.500 Feedback

Explanation / Answer

May

June

July

May sales on account:

Collected in May

142500
(250000*57%)

Collected in June

97500
(250000*39%)

Collected in July

10000
(250000*4%)

June sales on account:

Collected in June

216600
(380000*57%)

Collected in July

148200
(380000*39%)

July sales on account:

Collected in July

285000
(500000*57%)

Total Cash Collected

142500

314100

443200

May

June

July

May sales on account:

Collected in May

142500
(250000*57%)

Collected in June

97500
(250000*39%)

Collected in July

10000
(250000*4%)

June sales on account:

Collected in June

216600
(380000*57%)

Collected in July

148200
(380000*39%)

July sales on account:

Collected in July

285000
(500000*57%)

Total Cash Collected

142500

314100

443200

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