r Login Chapter 8 Graded Exercises Help Save& Exit Saved Silver Company makes a
ID: 2609802 • Letter: R
Question
r Login Chapter 8 Graded Exercises Help Save& Exit Saved 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 une Total Budgeted sales (all on account) points $480,00 $680,000 $260,000 $1,420,000 From past experience, the company has learned that 30% of a month's sales are collected in the month of sale, another 60% are collecte ed in the month following sale, and the remaining 10% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $410,000, and March sales totaled $440,000. 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 3Oth? Complete this question by entering your answers in the tabs below What is the accounts recelvable balance on June 30th? Required 1Explanation / Answer
Feb
March
April
May
June
sales/budgeted sale
410000
440000
480000
680000
260000
cash collection
April
May
June
total
30% of month sale
144000
204000
78000
60% in the month following sale
264000
288000
408000
10% in the second month of following sale
41000
44000
48000
total cash collection of month
449000
536000
534000
1519000
Account receivable balance on june 30
60% balance of may sale
440000*10%
44000
70% of june sales
260000*70%
182000
Account receivable balance on june 30
226000
Feb
March
April
May
June
sales/budgeted sale
410000
440000
480000
680000
260000
cash collection
April
May
June
total
30% of month sale
144000
204000
78000
60% in the month following sale
264000
288000
408000
10% in the second month of following sale
41000
44000
48000
total cash collection of month
449000
536000
534000
1519000
Account receivable balance on june 30
60% balance of may sale
440000*10%
44000
70% of june sales
260000*70%
182000
Account receivable balance on june 30
226000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.