Pet Place 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$134,000June155,000July1 69,000All sales are on account. Sixty-five percent of sales are expected to be collected in the month of the sale, 30% in the month following the sale, and the remainder in the second month fol-lowing the sale. Prepare a schedule indicating cash collections from sales for May, June, and July

Pet Place Supplies Inc.

Schedule of Cash from Sales for May, June, and July:

                                             May           June           July

Cash collections:

60% month of sale         $80,400     $93,000   $101,400

30% ffg month of sale                         40,200      46,500

10% second month                                                 13,400

Total cash collections   $80,400    $133,200   $161,300

Explanation:

a) Data and Calculations:

                                             May           June           July

Projected credit sales    $134,000   $155,000  $169,000

Cash collections:

60% month of sale         $80,400     $93,000   $101,400

30% ffg month of sale                         40,200      46,500

10% second month                                                 13,400

Total cash collections   $80,400    $133,200   $161,300