Question: Fido Lucy Wholesale Inc a pet wholesale supplier was

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
April 900,000
May 1,200,000

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.

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  • CreatedFebruary 04, 2014
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