Exercise 8-1 (Algo) Schedule of Expected Cash Collections [LO8-2] Silver Company makes a product that is...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Exercise 8-1 (Algo) Schedule of Expected Cash Collections [LO8-2] 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 $310,000 May $510,000 June $160,000 Total $980,000 From past experience, the company has learned that 25% of a month's sales are collected in the month of sale, another 60% are collected in the month following sale, and the remaining 15% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $240,000, and March sales totaled $270,000. 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 $ 23,000 $ 23,000 March sales 182,000 26,000 208,000 April sales 60,000 210,000 30,000 300,000 May sales 100,000 350,000 450,000 June sales 40,000 40,000 Total cash collections $ 265,000 $ 336,000 $ 420,000 $ 1,021,000 V Required 1 Required 2 > Required 1 Required 2 What is the accounts receivable balance on June 30th? Total accounts receivable at June 30 $210,000 < Required 1 Require Exercise 8-1 (Algo) Schedule of Expected Cash Collections [LO8-2] 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 $310,000 May $510,000 June $160,000 Total $980,000 From past experience, the company has learned that 25% of a month's sales are collected in the month of sale, another 60% are collected in the month following sale, and the remaining 15% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $240,000, and March sales totaled $270,000. 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 $ 23,000 $ 23,000 March sales 182,000 26,000 208,000 April sales 60,000 210,000 30,000 300,000 May sales 100,000 350,000 450,000 June sales 40,000 40,000 Total cash collections $ 265,000 $ 336,000 $ 420,000 $ 1,021,000 V Required 1 Required 2 > Required 1 Required 2 What is the accounts receivable balance on June 30th? Total accounts receivable at June 30 $210,000 < Required 1 Require
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Empire Company Limited owns or franchises more than 1,300 corporate and franchised stores in all 10 provinces under retail banners that include Sobeys, Foodland, Fresh Co, Safeway, IGA, IGA Extra,...
-
Listed as follows are various costs found in businesses. Classify each cost as a fixed or variable cost, and as a product and/or period cost. A. Wages of administrative staff B. Shipping costs on...
-
Information related to Aris Company for 1996 is summarized below: \section*{Instructions} - (a) What amount of bad debts expense will Aris Company report if it uses the direct write-off method of...
-
Run America, Inc., manufactures running shoes. Its shoe is consistently rated poorly by Run Run Run magazine in its annual shoe review. The number one shoe in Run Run Runs review is the Cheetah a...
-
The generally accepted accounting principle which dictates that revenue be recognized in the accounting period in which it is earned is the: A. revenue recognition principle. B. matching principle....
-
Hello! Can you help please? I have everything done in excel and I cannot figure out what I'm doing wrong. Dickinson Brothers, Inc., is considering investing in a machine to produce computer...
-
What is privacy hygiene? What are some steps individuals can take to ensure better online privacy hygiene?
-
What tools are applicable internally and What tools are applicable externally with vendors?
-
Why are organisational values play an important role in the success of organisations. Define the term organisational value and explain where the determination of organisational values fits into the...
-
Discuss the core technologies used in restaurants and how the Internet has changed the way restaurants attract and serve customers.
-
Discuss how the Hilton Hotel maintains their brand promise to their customer base (i.e., their target market). Make certain to select a hotel that has not already been mentioned.
-
For your Final Project, you will theory paper that articulates your theoretical orientation toward working with couples and families. Your paper must include the following elements that evolve from...
-
Reports on Internal Controls. Discuss the similarities and differences between the Cadbury report recommendations and the COSO recommendations for management reports on internal controls.
-
Miscellaneous Conditions Affecting Audit Report. In the following independent situations, assume that you are the audit partner. 1 When you requested permission to inspect the minutes of the board of...
-
A new piece of software arrives in the office or in your home. How do you go about learning about it? Do you install it and start trying it out? (Activist) Do you watch as others show you how to...
Study smarter with the SolutionInn App