Question
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) | $ 350,000 | $ 550,000 | $ 190,000 | $ 1,090,000 |
From past experience, the company has learned that 25% of a months sales are collected in the month of sale, another 70% are collected in the month following sale, and the remaining 5% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $280,000, and March sales totaled $310,000.
Required:
1. Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter. (PLEASE ACTUALLY INCLUDE THE CHART!!!!!!!!) I need to fill in a chart so please include that.
2. What is the accounts receivable balance on June 30th?
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Advanced Financial Accounting
Authors: Richard Lewis, David Pendrill
6th Edition
0273638335, 978-0273638339
