Silver Company makes a product with peak sales in May of each year. Its sales budget...

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Silver Company makes a product with peak sales in May of each year. Its sales budget for the second quarter is given below: Budgeted sales (all on account) April $ 490,000 May $ 690,000 June $ 220,000 Total $ 1,400,000 The company estimates 25% of a month's 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 $420,000, and March sales totaled $450,000. 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 February sales March sales April sales May sales June sales Total cash collections April May June Total Silver Company makes a product with peak sales in May of each year. Its sales budget for the second quarter is given below: Budgeted sales (all on account) April $ 490,000 May $ 690,000 June $ 220,000 Total $ 1,400,000 The company estimates 25% of a month's 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 $420,000, and March sales totaled $450,000. 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 February sales March sales April sales May sales June sales Total cash collections April May June Total

Answer rating: 100% (QA)

Lets tackle this problem step by step Step 1 Understand the Collection Pattern Silver Company collects its sales as follows 25 in the month of sale 60 ... View the full answer