Silver Company makes a product that is very popular as a Mother’s Day gift. Thus, peak sales occur in May of each year.

[answerhappygod]

Silver Company makes a product that is very popular as a
Mother’s Day gift. Thus, peak sales occur in May of each year.
These peak sales are shown in the following sales budget for the
second quarter:
From past experience, the company has learned that 25% of a
month’s sales are collected in the month of sale, another 65% are
collected in the month following the sale, and the remaining 10%
are collected in the second month following the sale. Bad debts are
negligible and can be ignored. February sales totalled $380,000,
and March sales totalled $360,000.
Required:
1. Prepare a schedule of expected cash
collections from sales, by month and in total, for the second
quarter.
Silver Company makes a product that is very popular as a
Mother’s Day gift. Thus, peak sales occur in May of each year.
These peak sales are shown in the following sales budget for the
second quarter:
From past experience, the company has learned that 25% of a
month’s sales are collected in the month of sale, another 65% are
collected in the month following the sale, and the remaining 10%
are collected in the second month following the sale. Bad debts are
negligible and can be ignored. February sales totalled $380,000,
and March sales totalled $360,000.
Required:
1. Prepare a schedule of expected cash
collections from sales, by month and in total, for the second
quarter.
2. Assume that the company will prepare a
budgeted balance sheet as of June 30. Compute the accounts
receivable as of that date.
2. Assume that the company will prepare a
budgeted balance sheet as of June 30. Compute the accounts
receivable as of that date.
.