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) $410,000 $ 610,000 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 $340,000, and March sales totaled $370,000 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 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 February sales March sales April sales May sales June sales Total cash collections $ 61,000 61,000 $ 0 $ June $ 0 $ Total June $ 210,000 61,000 0 0 Total $1,230,000 0 61,000

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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4
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.
2.37
April
$410,000
February sales
March sales
April sales
May sales
June sales
Total cash collections
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 $340,000, and March sales totaled $370,000.
$
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
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
$ 61,000
61,000 $
May
$610,000
0 $
June
$
$
June
$ 210,000
Total
61,000
0
0
0
Total
$1,230,000
0
61,000
Transcribed Image Text:4 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. 2.37 April $410,000 February sales March sales April sales May sales June sales Total cash collections 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 $340,000, and March sales totaled $370,000. $ 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 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 $ 61,000 61,000 $ May $610,000 0 $ June $ $ June $ 210,000 Total 61,000 0 0 0 Total $1,230,000 0 61,000
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