Silver Company makes a product that is very popular as a Mother\'s Day gift. Thu

Question

Silver Company makes a product that is very popular as a Mother's Day gift. Thus, peak sales the company's sales budget for the second quarter given below occur in May of each year, as shown in Apri $330,000 $530,000 $210,000 $1,070,000 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. 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 1Required 2 What is the accounts receivable balance on June 30th? al accounts receivable at June Required 2 Required 1

Explanation / Answer

Schedule of expected cash collection :

Calculate account receivable on june 30:

April May June Total February sales 39000 39000 March sales 174000 43500 217500 April sales 82500 198000 49500 330000 May sales 132500 318000 450500 June sales 52500 52500 Total cash collection 295500 374000 420000 1089500

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