Silver Company makes a product that is very popular as a Mother's Day gift. Thus, peak...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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 $ 320,000 May June $520,000 $ 180,000 Total $ 1,020,000 From past experience, the company has learned that 30% of a month's sales are collected in the month of sale, another 65% 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 $250,000, and March sales totaled $280,000. 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? 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 $ 0 March sales 0 April sales 0 May sales 0 June sales 0 Total cash collections $ 0 $ 0 $ 0 $ 0 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 $ 320,000 May June $520,000 $ 180,000 Total $ 1,020,000 From past experience, the company has learned that 30% of a month's sales are collected in the month of sale, another 65% 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 $250,000, and March sales totaled $280,000. 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? 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 $ 0 March sales 0 April sales 0 May sales 0 June sales 0 Total cash collections $ 0 $ 0 $ 0 $ 0
Expert Answer:
Answer rating: 100% (QA)
To prepare a schedule of expected cash collections from sales we need to apply the given collection ... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
Students also viewed these accounting questions
-
Animist Designers has generated sales of $ 6 2 5 , 0 0 0 for the current year. If it can increase its sales at a rate of 1 2 percent every year, how long will it take for its sales to triple? ( Round...
-
Cooper wants to retire with $720000 in his retirement account exactly 38 years from today. He will make annual deposits at the end of each year to fund his retirement account. If he can earn 7...
-
1. Chopra v. Eaton (T.) Co. (1999), 240 A.R. 201 (Q.B.); 1999 ABQB 201 (CanLII) Chopra went to Eaton's department store seeking a refund. An argument ensued. Frauenfeld (from secur- ity) told Chopra...
-
the IP address are for illustrative purposes only. Use your own IP addressing scheme (You may use classful and classless IP addresses as per your preference). Note that students need to attach the...
-
1. Would IBMs value statements have caused IBM to act differently in the three situations described in the case? Explain. 2. Are Googles actions in the situations described in the case consistent...
-
A graph of a population of yeast cells in a new laboratory culture as a function of time is shown. (a) Describe how the rate of population increase varies. (b) When is this rate highest? (c) On what...
-
Jurvin Enterprises recorded the following transactions for the just completed month. The company had no beginning inventories. a. \($94,000\) in raw materials were purchased for cash. b. \($89,000\)...
-
Rod Clooney purchases Agnes Mitchell's sole proprietorship for $990,000 on August 15, 2014. The assets of the business are as follows: Rod and Agnes agree that $50,000 of the purchase price is for...
-
Sales Mix and Break-Even Analysis Megan Company has fixed costs of $530,120. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products are...
-
Cullumber Equipment Company sells computers for $1,760 each and also gives each customer a 2-year warranty that requires the company to perform periodic services and to replace defective parts....
-
What is a collaboration system? What is unstructured collaboration versus structured collaboration? Define both and include the benefits. Why different collaboration may be needed for different...
-
During December, Luxury Cruise Lines incurs employee salaries of $3 million. Withholdings in December are $229,500 for the employee portion of FICA, $450,000 for federal income tax, and $187,500 for...
-
Why does a programmer add comments (//) when coding an algorithm? explain with an example
-
Identify a collaborations that the Aged Care Facility workplace currently has. collaboration organization; physiotherapy service center Locate the two (2)...
-
UTT has total assets of $537,800, net fixed assets of $412,400, long-term debt of $323,900, and total debt of $388,700. If inventory is $173,900, what is the current ratio?
-
Recently, a maintenance facility opened in Malaysia. That facility proposed to Cargo Division that it could conduct the maintenance in Malaysia. The facility proposed a price of $42 million for the...
-
Prairie Outfitters, Inc., a retailer, accepts paymnent through credit cards. During August, credit card sales amounted to $12,000. The processor charges a 3% fee. Assuming that the credit card...
-
What is the likely effect of international stock exchange listing status on the voluntary disclosures of MNEs? :
-
Discuss the kinds of information you would expect to see in the corporate review, the operations review, and the financial review sections of an MNEs directors report.
-
Discuss the relevance to financial analysts and investors of additional disclosures by MNEs with regard to corporate strategy and related issues.
Study smarter with the SolutionInn App