Check my work Silver Company makes a product that is very popular as a Mother\'s

Question

Check my work 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) $500, 000 $700,000$240,000 $1,440,000 From past experience, the company has learned that 20% of a month's sales are collected in the month of sale, another 60% are collected in the monthfollowing sale, and the remaining 20% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $430,000, and March sales totaled S460,ooo. 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 Required1 Required 2 Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter ed Cash Prev6 of 7 Next > 5 8

Explanation / Answer

EXPECTED CASH COLLECTIONS April may June TOTAL Feb month sales 86,000 86,000 March Month sales 276,000 92000 368,000 April Month Sales 100000 300000 100000 500,000 May Month Sales 140,000 420,000 560,000 June Month sales 288000 288,000 Total Cash Collections 462,000 532,000 808,000 1,802,000 Accounts receivable at June30: May sales receivable (700,000*20%) 140,000 June sales receivable (1440,000*80%) 1152000 Total Accouts receivable at june end 1292000

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