Silver Company makes a product that is very popular as a Mother’s Day gift. Thus
ID: 2406153 • Letter: S
Question
Silver Company makes a product that is very popular as a Mother’s Day gift. Thus, peak sales occur in May of each year, as shown in the company’s sales budget for the second quarter given below:
From past experience, the company has learned that 25% of a month’s sales are collected in the month of sale, another 60% are collected in the month following sale, and the remaining 15% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $360,000, and March sales totaled $390,000.
Required:
1. Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter.
2. What is the accounts receivable balance on June 30th?
April May June Total Budgeted sales (all on account) $430,000 $630,000 $200,000 $1,260,000 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter. Schedule of Expected Cash Collections April May June Total February sales March sales April sales May sales June sales Total cash collectionsExplanation / Answer
Dear Student Thank you for using Chegg Please find below the answer Schedule of expected cash collections Paticulars April May June Total February Sales 54,000.00 54,000.00 March Sales 234,000.00 58,500.00 292,500.00 April Sales 107,500.00 258,000.00 64,500.00 430,000.00 May Sales 157,500.00 378,000.00 535,500.00 June sales 50,000.00 50,000.00 Total cash collections 395,500.00 474,000.00 492,500.00 1,362,000.00 Pending May Collections 94,500.00 Pending June Collections 150,000.00 Accounts receivable as at June 30 244,500.00
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