FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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:
Budgeted sales (all on account)
ances
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 totaled $230,000, and March sales totaled $260,000.
Required 1 Required 2
April
$300,000
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?
May
$500,000
Complete this question by entering your answers in the tabs below.
February sales
March sales
April sales
May sales
June sales
Total cash collections
June
$200,000
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
Required 1 Required 2
June
Total accounts receivable at June 30
Show Transcribed Text
Total
$1,000,000
What is the accounts receivable balance on June 30th?
Total
Complete this question by entering your answers in the tabs below.
expand button
Transcribed Image Text: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: Budgeted sales (all on account) ances 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 totaled $230,000, and March sales totaled $260,000. Required 1 Required 2 April $300,000 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? May $500,000 Complete this question by entering your answers in the tabs below. February sales March sales April sales May sales June sales Total cash collections June $200,000 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 Required 1 Required 2 June Total accounts receivable at June 30 Show Transcribed Text Total $1,000,000 What is the accounts receivable balance on June 30th? Total Complete this question by entering your answers in the tabs below.
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