**Silver Company Sales Budget and Cash Collections****Overview:**Silver Company produces a product that becomes very popular around Mother's Day, leading to peak sales in May each year. Below is the sales budget for the second quarter:| Month | Budgeted Sales (all on account) ||--------|--------------------------------|| April | $450,000 || May | $650,000 || June | $250,000 || **Total** | **$1,350,000** |**Collection Pattern:**- 25% of sales are collected in the sales month.- 60% are collected in the following month.- 15% are collected in the second month following the sale.- Bad debts are negligible.**Historical Data:**- February sales were $380,000.- March sales were $410,000.**Requirements:**1. **Schedule of Expected Cash Collections:** Prepare a schedule by month and total for the second quarter.2. **Accounts Receivable Balance:** Calculate the balance as of June 30th.**Task:**- **Prepare a Cash Collection Schedule:** | Schedule of Expected Cash Collections | April | May | June | Total | |---------------------------------------|-------|-----|------|-------| | February sales | | | | $0 | | March sales | | | | $0 | | April sales | | | | $0 | | May sales | | | | $0 | | June sales | | | | $0 | | **Total cash collections** | **$0**| **$0**| **$0**| **$0** |Note: The table above is initially blank and needs to be filled out based on the provided collection pattern.

Estimating how much money a company expects to earn in the future from sales or Froaccounts…

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) From past 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 $380,000, and March sales totaled $410,000. 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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 April May June $ 450,000 $ 650,000 $ 250,000 February sales March sales April sales May sales June sales Total cash collections 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 $ 0 $ 0 $ June $ Total $ 1,350,000 0 $ Total 0 0 0 0 0 0

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) From past 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 $380,000, and March sales totaled $410,000. 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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 April May June $ 450,000 $ 650,000 $ 250,000 February sales March sales April sales May sales June sales Total cash collections 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 $ 0 $ 0 $ June $ Total $ 1,350,000 0 $ Total 0 0 0 0 0 0

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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