PetCare Supplies Inc., a pet wholesale supplier, was organized on May 1, 2014. Projected sales for each of the first three months of operations are as follows:
May ......$ 126,000
June ......145,000
July .......162,000
The company expects to sell 10% of its merchandise for cash. Of sales on account, 60% are expected to be collected in the month of the sale, 35% 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.