at is very popular as a Mother's Day gift. Thus, peak sales occur in May of each yea Second quarter given below: April $ 420,000 May June Total $ 620,000 $ 240,000 $ 1,280,000 has learned that 20% of a month's sales are collected in the month of sale, anothe e, and the remaining 15% are collected in the second month following sale. Bad del uary sales totaled $350,000, and March sales totaled $380,000. ash collections from sales, by month and in total, for the second quarter. alance on June 30th?
at is very popular as a Mother's Day gift. Thus, peak sales occur in May of each yea Second quarter given below: April $ 420,000 May June Total $ 620,000 $ 240,000 $ 1,280,000 has learned that 20% of a month's sales are collected in the month of sale, anothe e, and the remaining 15% are collected in the second month following sale. Bad del uary sales totaled $350,000, and March sales totaled $380,000. ash collections from sales, by month and in total, for the second quarter. alance on June 30th?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Dhapa
Transcribed Image Text: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
May
June
Total
$420,000 $ 620,000 $ 240,000 $ 1,280,000
From past experience, the company has learned that 20% of a month's sales are collected in the month of sale, another 65% 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 $350,000, and March sales totaled $380,000.
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?
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