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 inthe company's sales budget for the second quarter given below:Required 1 Required 2Budgeted sales (all on account)From past experience, the company has learned that 30% of a month's sales are collected in the month of sale, another 60% arecollected in the month following sale, and the remaining 10% are collected in the second month following sale. Bad debts arenegligible and can be ignored. February sales totaled $410,000, and March sales totaled $440,000.Complete this question by entering your answers in the tabs below.April$ 480,000Required: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?February salesMarch salesApril salesMay salesJune salesTotal cash collectionsPrepare a schedule of expected cash collections from sales, by month and in total, for the second quarter.Schedule of Expected Cash CollectionsAprilMay0$May$ 680,0000 $Required 1June0TotalRequired 2>OJune$ 260,000OOTotal$ 1,420,000000

The credit sales are the sales for which cash is not received. The account receivables represent the…

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 show he company's sales budget for the second quarter given below: April $ 480,000 May $ 680,000 June $ 260,000 Total $ 1,420,000 Budgeted sales (all on account) from past experience, the company has learned that 30% of a month's sales are collected in the month of sale, another 60% are ollected in the month following sale, and the remaining 10% are collected in the second month following sale. Bad debts are egligible and can be ignored. February sales totaled $410,000, and March sales totaled $440,000. Required: 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?

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 show he company's sales budget for the second quarter given below: April $ 480,000 May $ 680,000 June $ 260,000 Total $ 1,420,000 Budgeted sales (all on account) from past experience, the company has learned that 30% of a month's sales are collected in the month of sale, another 60% are ollected in the month following sale, and the remaining 10% are collected in the second month following sale. Bad debts are egligible and can be ignored. February sales totaled $410,000, and March sales totaled $440,000. Required: 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?

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter15: Managing Short-term Assets

Section: Chapter Questions

Problem 1PROB

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