Fido & Lucy Wholesale Inc., a pet wholesale supplier, was organized on March 1, 2013. Projected sales for each of the first three months of operations are as follows:
March $ 750,000
The company expects to sell 20% of its merchandise for cash. Of sales on account, 40% are expected to be collected in the month of the sale, 55% 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.