Question
Exercise 8-1 (Algo) Schedule of Expected Cash Collections [LO8-2] Silver Company makes a product that is very popular as a Mothers Day gift. Thus, peak
Exercise 8-1 (Algo) Schedule of Expected Cash Collections [LO8-2]
Silver Company makes a product that is very popular as a Mothers Day gift. Thus, peak sales occur in May of each year, as shown in the companys sales budget for the second quarter given below:
| April | May | June | Total | |
|---|---|---|---|---|
| Budgeted sales (all on account) | $ 380,000 | $ 580,000 | $ 200,000 | $ 1,160,000 |
From past experience, the company has learned that 20% of a months sales are collected in the month of sale, another 60% are collected in the month following sale, and the remaining 20% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $310,000, and March sales totaled $340,000.
Required:
- Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter.
- What is the accounts receivable balance on June 30th?
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Ethical Hacking The Ultimate Guide To Using Penetration Testing To Audit And Improve The Cybersecurity Of Computer Networks For Beginners Including Tips On Social Engineering
Authors: Lester Evans
1st Edition
1647481813, 978-1647481810
