1. Prepare a schedule of cash collections from sales, by month and in total, for...
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Accounting
1. Prepare a schedule of cash collections from sales, by month and in total, for the second quarter.
2. Assume the company will prepare a budgeted balance sheet as of June 30. Compute the accounts recievable as of that date.
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: April May June Total Budgeted sales (all on account) $430,000 $630,000 $200,000 $1,260,000 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
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