Happy Tails Wholesale Inc., a pet wholesale supplier, was organized on March 1, 2008. Projected sales for each of the first three months of operations are as follows:
|
March |
$450,000 |
|
April |
520,000 |
|
May |
560,000 |
The company expects to sell 10% of its merchandise for cash. Of sales on account, 50% are expected to be collected in the month of the sale, 40% 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 March, April, and May.