ezto.mheducation.com Old Dominion D occur in May y makes a product that is very

Question

ezto.mheducation.com Old Dominion D occur in May y makes a product that is very popular as a Mother ay gt. Thus, peak sales of each year, as shown in the company's sales budget for the second quarter given below Budgeted sales (all on account) $390,000 $590,000 $230,000 $1,210,000 From past experience, the company has learned that 25% of a month's sales are colected in the month ofsale, another 60% are collected in the month folowfg sale, and the remaining 15% are collected in the second month following sale. Bad debts are negligible and can be $320,000, and March sales totaled $350,000. February sales totaled 1. Prepare a schedule of expected cash collections from sales, by month and in total, for the second Schedule of Expected Cash Collections February sales March sales Apri sales May sales June sales Total cash collections of $ Assume that the company ill prepare a budgeted balance sheet as of June 30. Compute the accounts receivable as of that date 2. May sales June sales nts receivable at June 30 S 2 3 4 6 9

Explanation / Answer

April May June Total February sales 48000 48000 March sales 210000 52500 262500 April sales 97500 234000 58500 390000 May sales 147500 354000 501500 June sales 57500 57500 Total cash collections 355500 434000 470000 1259500 2 May sales 88500 =590000*15% June sales 172500 =230000*75% Total Accounts Receivable at June 30 261000

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