Exercise Static Schedule of Expected Cash Collections LO
Silver Company makes a product that is very popular as a Mothers Day gift. Thus, peak sales occur in May of each year, as shown in the companys sales budget for the second quarter given below:
AprilMayJuneTotalBudgeted sales all on account$$$$
From past experience, the company has learned that of a months sales are collected in the month of sale, another are collected in the month following sale, and the remaining are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $ and March sales totaled $
Required:
Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter.
What is the accounts receivable balance on June th
