Silver Company makes a gift item popular during summer. The budgeted sales for the 2 quarter is as below (all sales are on account): Budgeted Sales April $300,000 May $500,000 Total cash collections June $200,000 Based on past data, Silver Company expects to collect 20% of sales in the month of sale, 70% in one month following sale, and 10% in two month following sale. Bad debt is negligible, so ignored. February and March sales were for $230,000 and $260,000 respectively. Required: a. Prepare a schedule of expected cash collection from sales by month and total for the 2nd quarter. April $ Total $1,000,000 May $ June $ Total S b. Silver company prepares a budgeted balance sheet on June 30. Compute the account receivable amount on that balance sheet.

Silver Company makes a gift item popular during summer. The budgeted sales for the 2 quarter is as below (all sales are on account): Based on past data, Silver Company expects to collect 20% of sales in the month of sale, 70% in one month following sale, and 10% in two month following sale. Bad debt is negligible, so ignored. February and March sales were for $230,000 and $260,000 respectively. Required: a. Prepare a schedule of expected cash collection from sales by month and total for the 2nd b. Silver company prepares a budgeted balance sheet on June 30 . Compute the account receivable amount on that balance sheet