Silver Company makes a product that is very popular as a Mother's Day gift. Thus, peak sales
Fantastic news! We've Found the answer you've been seeking!
Question:
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: April May June Total $ 460,000 $ 660,000 $ 210,000 $ 1,330,000 Budgeted sales (all on account) From past experience, the company has learned that 20% of a month's sales are collected in the month of sale, another 60% are collected in the month following sale, and the remaining 20% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $390,000, and March sales totaled $420,000. 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?
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/66489a8e6176f_19066489a8e083f9.jpg)
Posted Date: