Silver Company makes a product that is very popular as a Mother's Day gift. Thus, peak...
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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: Budgeted sales (all on account) April May $ 440,000 $ 640,000 June $220,000 Total $ 1,300,000 From past experience, the company has learned that 30% of a month's sales are collected in the month of sale, another 60% are collected 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 $370,000, and March sales totaled $400,000. 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? Answer is complete but not entirely correct. 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 $ 37,000 $ 0 $ March sales 240,000 40,000 0 $ 0 37,000 280,000 April sales 132,000 264,000 44,000 440,000 May sales 0 192,000 64,000 256,000 June sales 66,000 66,000 Total cash collections $ 409,000 $ 496,000 $ 174,000 $ 1,079,000 < Required 1 Required 2 > 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: Budgeted sales (all on account) April May $ 440,000 $ 640,000 June $220,000 Total $ 1,300,000 From past experience, the company has learned that 30% of a month's sales are collected in the month of sale, another 60% are collected 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 $370,000, and March sales totaled $400,000. 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? Answer is complete but not entirely correct. 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 $ 37,000 $ 0 $ March sales 240,000 40,000 0 $ 0 37,000 280,000 April sales 132,000 264,000 44,000 440,000 May sales 0 192,000 64,000 256,000 June sales 66,000 66,000 Total cash collections $ 409,000 $ 496,000 $ 174,000 $ 1,079,000 < Required 1 Required 2 >
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Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
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