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

Budgeted sales $($all on account$)$ $ $500,000$ $ $700,000$ $ $240,000$ $ $1,440,000$

From past experience, the company has learned that $20\%$ of a month$$s sales are collected in the month of sale, another $60\%$ are collected in the month following sale, and the remaining $20\%$ are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $$430,000,$ and March sales totaled $$460,000.$

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 $30$th$?$

Answer rating: 100% (QA)

1 Schedule of Expected Cash Collections from Sales April Sales 500000 x 20 100000 co... View the full answer