Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. silver company makes a product that is very popula

Silver Company makes a product that is very popular as a Mothers Day gift. Thus,...

50.1K

Verified Solution

Question

Accounting

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:

April May June Total
Budgeted sales (all on account) $420,000 $620,000 $240,000 $1,280,000

From past experience, the company has learned that 20% of a months sales are collected in the month of sale, another 65% 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 $350,000, and March sales totaled $380,000.

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?

imageimage

Schedule of Expected Cash Collections April May June Total February sales March sales April sales May sales June sales Total cash collections Total accounts receivable at June 30

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

You are considering a new product launch. The project will cost $857,000, have a four-year life,...

Finance
Q

assume that in 2018 the mean mathematics sat score was 536 and the standard deviation was...

Statistics
Q

Prove these scenarios by mathematical induction: (1) Prove n2 < 2n for all integers n>4 (2) Prove that...

Advance Math
Q

Question 1: Some people are more susceptible to hypnosis than others. People who are highly suggestible have...

Basic Math
Q

26 180 The colour of bright fringe nearest to central white fringe in interference pattern...

Physics
Q

A lottery costs 1 dollar to play Bella must pick four digits in order from...

Basic Math
Q

The bearing from A to C is S 55 E The bearing from A to...

Basic Math
Q

A manufacturers contribution margin income statement for the year follows. Prepare contribution a...

Accounting
Q

purchased the assets of a competing business and paid cash for the following :land,100,00;lodge,530,000;and fishing...

Accounting
Q

The adjusted trial balance of Nick Company contained the following information: ...

Accounting
Q

Answers must be placed in a chart: Advanced Miniature Development manufactures computer graphics cards (GPUs)....

Accounting
Q

30. An electricity company charging depreciation on straight line method on each asset separately, sells...

Accounting