Furry Friends Supplikes ec a pet wholesale supplies was orga

Furry Friends Supplikes ec., a pet wholesale supplies, was organized on May 1. Projected sales for each of the first three months of operations are as follows May June July Al sales are on account. Severny percent cf sales are expected to bec ected in the month ofthe sle 25% in the month foliving the sale, and the remainder in the second month follealng th Prepare a schedule idating cash collect ens from sales for May, June, and kdy, Enter aa aneunts as poitive numbers. $136,000 175,000 180,000 Furry Friends Supplies Inc. Schedule of Collections from Sale For the Three Months Ending July 31 May sales on acout Collected in May Collected in June Collected in July June sales on account Collected in June Collected in July

Solution

Furry Friends Supplies Inc.

Schedule of Collection from Sales

For the Three Month Ending July 31

May

June

July

May sales on accounts

Collected in May

$   109,200

Collected in June

$   39,000

Collected in July

$    7,800

June sales on accounts

Collected in June

$ 122,500

Collected in July

$   43,750

July sales on accounts

Collected in July

$ 126,000

Total

$   109,200

$ 161,500

$ 177,550

Explanation:

Sales collection in May = May credit sales x 0.7 = $ 156,000 x 0.7 = $ 109,200

Sales collection in June = May credit sales x 0.25 + June credit sales x 0.7

                                     = $ 156,000 x 0.25 + $ 175,000 x 0.7

                                       = $ 39,000 + $ 122,500 = $ 161,500

Sales collection in July = May credit sales x 0.05 + June credit sales x 0.25 + July credit sales x 0.7

                                      = $ 156,000 x 0.05 + $ 175,000 x 0.25 + $ 180,000 x 0.7

                                      = $ 7,800 + $ 43,750 + $ 126,000 = $ 177,550

Furry Friends Supplies Inc.
Schedule of Collection from Sales
For the Three Month Ending July 31
	May	June	July
May sales on accounts
Collected in May	$   109,200
Collected in June		$   39,000
Collected in July			$    7,800
June sales on accounts
Collected in June		$ 122,500
Collected in July			$   43,750
July sales on accounts
Collected in July			$ 126,000
Total	$   109,200	$ 161,500	$ 177,550