Question
In: Accounting
Silver Company makes a product that is very popular as a Mother’s Day gift. Thus, peak...
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) | $500,000 | $700,000 | $240,000 | $1,440,000 |
From past experience, the company has learned that 20% of a month’s sales are collected in the month of sale, another 60% are collected in the month following sale, and the remaining 20% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $430,000, and March sales totaled $460,000.
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.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Silver Company makes a product that is very popular as a Mother’s Day gift. Thus, peak...
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)
$450,000
$650,000
$250,000
$1,350,000
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...
Silver Company makes a product that is very popular as a Mother’s Day gift. Thus, peak...
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)
$410,000 $610,000 $210,000 $1,230,000
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...
Silver Company makes a product that is very popular as a Mother’s Day gift. Thus, peak...
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)
$330,000
$530,000
$210,000
$1,070,000
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...
Silver Company makes a product that is very popular as a Mother’s Day gift. Thus, peak...
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)
$390,000
$590,000
$230,000
$1,210,000
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...
Silver Company makes a product that is very popular as a Mother’s Day gift. Thus, peak...
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)
$470,000 $670,000 $230,000 $1,370,000 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
sale, and the...
Silver Company makes a product that is very popular as a Mother’s Day gift. Thus, peak...
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)
$460,000
$660,000
$210,000
$1,330,000
From past experience, the company has learned that 20% of a
month’s sales are collected in the month of sale, another 60% are
collected in the month following sale, and the...
Silver Company makes a product that is very popular as a Mother’s Day gift. Thus, peak...
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)
$330,000
$530,000
$210,000
$1,070,000
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...
Silver Company makes a product that is very popular as a Mother’s Day gift. Thus, peak...
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)
$390,000
$590,000
$230,000
$1,210,000
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...
Silver Company makes a product that is very popular as a Mother’s Day gift. Thus, peak...
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)
$310,000
$510,000
$160,000
$980,000
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...
Silver Company makes a product that is very popular as a Mother’s Day gift. Thus, peak...
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...
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