PetJoy Wholesale Inc., a pet wholesale supplier, was organized on March 1, 2016.

Question

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 March April May $200,000 280,000 380,000 The company expects to sell 11% of its merchandise for cash. Of sales on account, 54% 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 March, April, and May. PetJoy Wholesale Inc. Schedule of Cash Collections For the Three Months Er May 31, 2016 March April May Receipts from cash sales Cash sales March sales on account Collected in March Collected in April Collected in May April sales on account: Collected in April Collected in May May sales on account Collected in May Total cash collected

Explanation / Answer

1. March cash = [11% of 200,000 + 54% of 89% of 200,000] = 118120

2. April cash = [11% of 280,000 + 54% of 89% of 280,000] + [41% of 89% of 200,000] = 238348

3. May cash = [11% of 380,000 + 54% of 89% of 3804,000] + [41% of 89% of 280,000] + [5% of 89% of 200,000] = 415600

To fill the table, sqaure braces are placed. Go vertically along a month to fill out the table and add all of them to obtain total cash.

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