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) $440,000 $640,000 $220,000 $1,300,000 From past experience, the company has learned that 30% of a months sales are collected in the month of sale, another 60% are collected in the month following sale, and the remaining 10% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $370,000, and March sales totaled $400,000. Required:

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

Silver Company
Schedule of Expected Cash Collections
	April	May	June	Total
February sales				0
March sales				0
April sales				0
May sales				0
June sales				0
Total cash collections	0	0	0	0

Silver Company
Accounts receivable at June 30
May sales
June sales
Total accounts receivable at june 30 $