Ashley 201 810-Sp s? D Chapter 8: x :) Files × perfect con x \"New Tab × Economi

Question

Ashley 201 810-Sp s? D Chapter 8: x :) Files × perfect con x "New Tab × Economics × New Tab × Hawkes Le × ! ! Hawkes Lee × C ezto.mheducation.com/hm.tpx?-=0.1371 29992209464541521599598864 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: April May June Total Budgeted sales (all on account $300,000 $500,000 $200,000 $1,000,000 From past experience, the company has learned that 20% of a month's sales are collected in the month of sale, another 70% are collected in the month following sale, and the remaining 10% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totalec $230,000, and March sales totaled $260,000. Required: 1. Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter. Schedule of Expected Cash Collections April May June Total February sales March sales April salers May sales June sales Total cash collections 2. Assume that the company will prepare a budgeted balance sheet as of June 30. Compute the accounts receivable as of that date May sales June sales Total accounts receivable at June 30

Explanation / Answer

1) Schedule of expected cash collection :

2) Schedule of account receivable :

April May June Total February sales 23000 23000 March sales 182000 26000 208000 April sales 60000 210000 30000 300000 May sale 100000 350000 450000 June sale 40000 40000 Total cash collection 265000 336000 420000 1021000

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