Question: one. 2 questions in one please make it clear Silver Company makes a product that is very popular as a Mother's Day gift. Thus, peak


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 $310,000 May $510,000 June $160,000 Total $980,000 From post experience, the company has learned that 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 $240,000, and March sales totaled $270,000 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? 0 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 $ March sales 0 April sales 0 May sales 0 Juno salos 0 Total cash collections $ 0$ 0 $ os 0 Required 1 Required 2 What is the accounts receivable balance on June 30th2 Total accounts receivable at June 30
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
