velue 25.00 points Silver Company makes a product that is very popular as a Moth
ID: 2461689 • Letter: V
Question
velue 25.00 points 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 (ell on account) $360,000$560,000 $220,000 $1,140,000 From past experience, the company has learned that 30% of a month's sales are collected in the month of sale, another 60% are collected in the month following sale, and the remaining 10% are collected in the second month following salo. Bad debts are negigible and can be ignored. February sales totaled $290,000, and March sales totaled $320,000. Required: 1. Prepare a schedule of expected cash colections from sales, by month and in total, for the second quarter Schedule of Expected Cash Collections June February sales March sales April sales May sales June sales Total cash collections 2. Assume that the company will prepare a budgeted balance sheot as of June 30 Compute the accounts receivable as of that roceivable as of that dateExplanation / Answer
Silver Company Details April May June Total Budgeted Sales Revenue 360,000 560,000 220,000 1,140,000 Silver Company Schedule of Expected Cash Collections Details April May June Total Collection Of Sales of February 29,000 29,000 Collection Of Sales of March 192,000 32,000 224,000 Collection Of Sales of April 108,000 216,000 36,000 360,000 Collection Of Sales of May 168,000 336,000 504,000 Collection Of Sales of June 66,000 66,000 Total Collections 329,000 416,000 438,000 1,183,000 Silver Company Balance sheet As on June 30 Accounts Receivable Balance Amt $ Sales of May 56,000 Sales Of June 154,000 Total 210,000
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