Silver Company makes a product with peak sales in May of each year. Its sales budget for the second quarter is given below: Budgeted sales (all on account) April $ 320,000 May $520,000 June $ 180,000 Total $ 1,020,000 The company estimates 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. 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 February sales March sales $ 12,500 182,000 May 14,000 June Total $ 12,500 196,000 < Prev 1 of 6 Next >

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:
Budgeted sales (all on account)
April
$ 320,000
May
$520,000
June
$ 180,000
Total
$ 1,020,000
The company estimates 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.
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
February sales
March sales
$
12,500
182,000
May
14,000
June
Total
$
12,500
196,000
< Prev
1 of 6
Next >
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: Budgeted sales (all on account) April $ 320,000 May $520,000 June $ 180,000 Total $ 1,020,000 The company estimates 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. 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 February sales March sales $ 12,500 182,000 May 14,000 June Total $ 12,500 196,000 < Prev 1 of 6 Next >
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