Comprehensive Quiz xeSilver Company MakesG Solved: Variable and Ab: X e Accounti

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Comprehensive Quiz xeSilver Company MakesG Solved: Variable and Ab: X e Accounting question ICix A1) Facebook xG Gaogle × . O 11) DAVE EAST PARANO tpx Time remeining: 047:51 6 10.00 points Exercise 8-1 Schedule of Expected Cash Collections LO8-2] Siver Company makas a product that is vary popular as a Mather's Day gitt. Thus, peak sales occur in May of each year, es shown in the company's sales budget for the second quarter gven below Total Budgaled sales (all on account) $340 000 540,000 $170,000 160,000 From past experience, the company has learned that 20% of a mont's sales are collected in the month of sale anulher 75% are collected in the month following sale, and the rema sacond month tollowing sale. Bad dabts are neglgbe and can ba ignorad Fabuary salas totaled termining 5% are tollected in the 5270,000, and March sales totaled 5300.000. Propare a quarter schodule of axpected cash colloctions from salas, by month and in total for the scond April May June February sales March sales Apri sales May sales June sales Total cash collechons 2. Assume that the company wil prepare a budgeted balance sheet as or June 30. Compute the accounts receivable as of tihat date. May sales June sales Tctal accounts recavable at Juna 30 Activate Windows Go to PC settings to activate Windows 10-41 AM 2 12/16/2017

Explanation / Answer

Schedule expected cash collection :

2) Calculate account receivable :

April May June Total February sales 270000*5=13500 13500 March sales 300000*75=225000 300000*5=15000 240000 April sales 340000*20%=68000 340000*75%=255000 340000*5%=17000 340000 May Sales 540000*20=108000 540000*75=405000 513000 June sales 170000*20=34000 34000 Total cash collections 306500 378000 456000 1140500

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