Saved Help Save &E; 2 Chec Silver Company makes a product that is very popular a

Question

Saved Help Save &E; 2 Chec 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 April $400,000 $600,000 190,000,190,000 Budgeted sales (all on account) points From pas collected in the month following sale, and the remaining 10% are collected in the second month negligible and can be ignored. February sales totaled $330,000, and March sales totaled $360.000. 012323) t experience, the company has learned that 30% of a month's sales are collected in the month of sale, another 60% are following sale. Bad debts are 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 1 Required 2 Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter. April February sales March sales April sales May sales June sales Total cash collections Required 2 Next > Prev ', 2et4iil

Explanation / Answer

1) Schedule of expected cash collections April May June Total February sales 33000 33000 (330000*10%) March sales 216000 36000 252000 (360000*60%) (360000*10%) April sales 120000 240000 40000 400000 (400000*30%) (400000*60%) (400000*10%) May Sales 180000 360000 540000 (600000*30%) (600000*60%) June Sales 57000 57000 (190000*30%) Total cash collection 369000 456000 457000 1282000 2) Accounts receivable balance as on June 30th = (600000*10%)+(190000*70%) = $193000

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