Silver Company makes a product with peak sales in May of each year. Its sales budget for the second quarter is given below: April $300,000 May June $200,000 Total $1,000,000 $500,000 Budgeted sales (all on account) The company estimates 20% of a month's sales are collected in the month of sale, another 70% are collected in the month following sale, and the remaining 10% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $230,000, and March sales totaled $260,000. 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

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 with peak sales in May of each year. Its sales budget for the second quarter is given below:
April
$300,000
May
$500,000
June
$200,000
Total
$1,000,000
Budgeted sales (all on account)
The company estimates 20% of a month's sales are collected in the month of sale, another 70% are collected in the month following
sale, and the remaining 10% are collected in the second month following sale. Bad debts are negligible and can be ignored. February
sales totaled $230,000, and March sales totaled $260,000.
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
June
Total
Required 2 >
Transcribed Image Text:Silver Company makes a product with peak sales in May of each year. Its sales budget for the second quarter is given below: April $300,000 May $500,000 June $200,000 Total $1,000,000 Budgeted sales (all on account) The company estimates 20% of a month's sales are collected in the month of sale, another 70% are collected in the month following sale, and the remaining 10% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $230,000, and March sales totaled $260,000. 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 June Total Required 2 >
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