April $350,000 $550,000 $190,000 $1,090,000 May June Total Budgeted sales (all o

Question

April $350,000 $550,000 $190,000 $1,090,000 May June Total Budgeted sales (all on account) From past experience, the company has learned that 25% of a month's sales are collected in the month of sale, another 70% are collected in the month following sale, and the remaining 5% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $280,000, and March sales totaled $310,000 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? Complete this question by entering your answers in the tabs below Required 1Required 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 collections

Explanation / Answer

Schedue of expected cash collection :

Account receivable at june 30 = (190000*75%+ 550000*5%) = 170000

April May June Total February sale 14000 14000 march sale 217000 15500 232500 April sale 87500 245000 17500 350000 May sale 137500 385000 522500 June sale 47500 47500 Total cash collection 318500 398000 450000 1166500

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