Chapter 22 Basic Homework

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Schedule of Cash Collections of Accounts Receivable

Bark & Purr Supplies Inc., a pet wholesale supplier, was organized on May 1. Projected sales for each of the first three months of operations are as follows:

May	$310,000
June	400,000
July	540,000

All sales are on account. 53 percent of sales 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.

Bark & Purr Supplies Inc. Schedule of Collections from Sales For the Three Months Ending July 31

	May	June	July
May sales on account:
Collected in May	$fill in the blank 1
Collected in June		$fill in the blank 2
Collected in July			$fill in the blank 3
June sales on account:
Collected in June		fill in the blank 4
Collected in July			fill in the blank 5
July sales on account:
Collected in July			fill in the blank 6
Total cash collected	$fill in the blank 7	$fill in the blank 8	$fill in the blank 9

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