From past experience, the company has learned that 30% of a month's sales are collected in the month of sale, another 65% are collected in the month following sale, and the remaining 5% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $250,000, and March sales totaled $280,000. Silver Company Cash Collection Februray March April June Total Cash collections Required: 1. 2. Silver company Acc reciveble at june 30 MAY JUNE April May TOTAL: June Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter. Assume that the company will prepare a budgeted balance sheet as of June 30. Compute the accounts receivable as of that date. Total
From past experience, the company has learned that 30% of a month's sales are collected in the month of sale, another 65% are collected in the month following sale, and the remaining 5% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $250,000, and March sales totaled $280,000. Silver Company Cash Collection Februray March April June Total Cash collections Required: 1. 2. Silver company Acc reciveble at june 30 MAY JUNE April May TOTAL: June Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter. Assume that the company will prepare a budgeted balance sheet as of June 30. Compute the accounts receivable as of that date. Total
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:From past experience, the company has learned that 30% of a month's sales are collected in
the month of sale, another 65% are collected in the month following sale, and the
remaining 5% are collected in the second month following sale. Bad debts are negligible
and can be ignored. February sales totaled $250,000, and March sales totaled $280,000.
Silver Company
Cash Collection
Februray
March
April
June
Total Cash collections.
Required:
1.
2.
Silver company
Acc reciveble at june 30
MAY
JUNE
April May
Assume that the company will prepare a budgeted balance sheet as of June 30.
Compute the accounts receivable as of that date.
June
Prepare a schedule of expected cash collections from sales, by month and in
total, for the second quarter.
TOTAL:
Total
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