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: 10 points April 500,000 700,000 $240,000 $1,440,000 May Total ine Budgeted sales (all on account) 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 month following 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 $460,000. Hint Print Required References1. 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

Explanation / Answer

Schedule of Expected cash collections April May June total February sales (430,000*20%) 86000 86000 march sales (460,000*60%;20%) 276000 92000 368000 April sales (500,000*20%;60;20%) 100000 300000 100000 500000 May sale (700,000*20%;60%) 140000 420000 560000 june sales (240,000*20%) 48000 48000 Total cash collections 462000 532000 568000 1562000 total accounts receivable at June 30 332000 (700000*20%+2400000*80%)

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