Pampered Pal Inc., a pet supplies distributor, was organized on January 1. Projected sales for each...

 

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Pampered Pal Inc., a pet supplies distributor, was organized on January 1. Projected sales for each of the first three months of operations are as follows: January February March $380,000 480,000 720,000 All sales are on account. Collections are expected as follows: 54% of sales are expected to be collected in the month of the sale, 41% 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 January, February, and March. Pampered Pal Inc. Schedule of Cash Collections from Sales For the Three Months Ending March 31 Line Item Description January sales on account: January February March Collected in January Collected in February Collected in March February sales on account: Collected in February Collected in March March sales on account: Collected in March Total cash collected Pampered Pal Inc., a pet supplies distributor, was organized on January 1. Projected sales for each of the first three months of operations are as follows: January February March $380,000 480,000 720,000 All sales are on account. Collections are expected as follows: 54% of sales are expected to be collected in the month of the sale, 41% 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 January, February, and March. Pampered Pal Inc. Schedule of Cash Collections from Sales For the Three Months Ending March 31 Line Item Description January sales on account: January February March Collected in January Collected in February Collected in March February sales on account: Collected in February Collected in March March sales on account: Collected in March Total cash collected

Answer rating: 100% (QA)

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