Silver Company makes a product that is very popular as a Mot

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:

From past experience, the company has learned that 25% of a month’s sales are collected in the month of sale, another 60% are collected in the month following sale, and the remaining 15% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $360,000, and March sales totaled $390,000.

Required:

1. 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?

	April	May	June	Total
Budgeted sales (all on account)	$430,000	$630,000	$200,000	$1,260,000

Complete this question by entering your answers in the tabs below. Required 1 Required 2 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 sales May sales June sales Total cash collections

Solution

Dear Student Thank you for using Chegg Please find below the answer Schedule of expected cash collections Paticulars April May June Total February Sales             54,000.00             54,000.00 March Sales          234,000.00             58,500.00          292,500.00 April Sales          107,500.00          258,000.00             64,500.00          430,000.00 May Sales          157,500.00          378,000.00          535,500.00 June sales             50,000.00             50,000.00 Total cash collections          395,500.00          474,000.00          492,500.00       1,362,000.00 Pending May Collections             94,500.00 Pending June Collections          150,000.00 Accounts receivable as at June 30          244,500.00