Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac

Exercise 17

Schedule of cash collections of accounts receivable
Pet Place Supplies Inc., a pet wholesale supplier, was organized on May 1, 2016. Projected sales for each of the first three months of operations are as follows:

All 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 following the sale.
Prepare a schedule indicating cash collections from sales for May, June, and July.