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 $ 330,000 Required 1 Required 2 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 $260,000, and March sales totaled $290,000. May $ 530,000 What is the accounts receivable balance on June 30th? Total accounts receivable at June 30 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 June $ 210,000 Required 2 > Total $ 1,070,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
$ 330,000
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 $260,000, and March sales totaled $290,000.
Required 1 Required 2
May
$ 530,000
Complete this question by entering your answers in the tabs below.
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?
What is the accounts receivable balance on June 30th?
Total accounts receivable at June 30
< Required 1
June
$ 210,000
Total
$ 1,070,000
Required 2 >
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: April $ 330,000 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 $260,000, and March sales totaled $290,000. Required 1 Required 2 May $ 530,000 Complete this question by entering your answers in the tabs below. 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? What is the accounts receivable balance on June 30th? Total accounts receivable at June 30 < Required 1 June $ 210,000 Total $ 1,070,000 Required 2 >
Kes d
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
$ 330,000
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 $260,000, and March sales totaled $290,000.
Complete this question by entering your answers in the tabs below.
February sales
March sales
May
$ 530,000
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?
April sales
May sales
June sales:
Total cash collections
Required 1 Required 2
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
Required 1
June
June
$ 210,000
Total
Total
$ 1,070,000
Required 2 >
Transcribed Image Text:Kes d 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 $ 330,000 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 $260,000, and March sales totaled $290,000. Complete this question by entering your answers in the tabs below. February sales March sales May $ 530,000 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? April sales May sales June sales: Total cash collections Required 1 Required 2 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 Required 1 June June $ 210,000 Total Total $ 1,070,000 Required 2 >
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