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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

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) $ 310,000 $ 510,000 $ 160,000 $ 980,000

From past experience, the company has learned that 25% of a months 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:

1a. Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter.

April May June Total
February sales ? ? ?
March sales ? ? ?
April sales ? ? ?
May sales ? ? ?
June sales ? ? ?
Total cash collections

1b. What is the accounts receivable balance on June 30th?

Total accounts receivable at June 30 ?

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