Exercise 91 Schedule of Expected Cash Collections LO92 Siver

Exercise 9-1 Schedule of Expected Cash Collections [LO9-2] Siver Company makes a produdi hat is very popular as a Mother\'s Day oft. Thus,peask sales ocour in May of each yoer s shown in the compary\'s sales budget for he given below Budgeted sales (all on account) 310,000 $510,000 $160,000 80,000 From past expenerce, the company has learnd that 25% of a month\'s sales ae clictenne morth ofsa, ae eresa, cotected ite mon second month following sale. Bad debts are negligible and can be ignored February sales totaled $240,000, and March sales otaled Sz70,000 1Prepare a schedule of expected cash collections from sales, by month and in tona, for the second quarter Aprl sales ops lock ontro option command

Solution

Answer 1 Schedule of expected cash collections April May June Total February sales $36,000.00 $36,000.00 March sales $162,000.00 $40,500.00 $202,500.00 April Sales $77,500.00 $186,000.00 $46,500.00 $310,000.00 May sales $127,500.00 $306,000.00 $433,500.00 June Sales $40,000.00 $40,000.00 Total Cash Collection $275,500.00 $354,000.00 $392,500.00 $1,022,000.00 Answer 2 Accounts receivables as on June 30 May Sales [$510000*15%] $76,500.00 June sales [$160000*75%] $120,000.00 Total Accounts Receivable at June 30 $196,500.00