Silver Company makes a product with peak sales in May of each year. Its sales budget for the second quarter is given below:

April May June Total

Budgeted sales $($all on account$)$ $ $480,000$ $ $680,000$ $ $260,000$ $ $1,420,000$

The company estimates $30\%$ of a month$$s sales are collected in the month of sale, another $60\%$ are collected in the month following sale, and the remaining $10\%$ are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $$410,000,$ and March sales totaled $$440,000.$

Required:

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

What is the accounts receivable balance on June $30$th$?$

Answer rating: 100% (QA)

To prepare a schedule of expected cash collections from sales we need to calculate the cash collecti... View the full answer