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,...

80.2K

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) $440,000 $640,000 $220,000 $1,300,000

From past experience, the company has learned that 30% of a months sales are collected in the month of sale, another 60% are collected in the month following sale, and the remaining 10% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $370,000, and March sales totaled $400,000.

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?

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: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

(Solid state physics) What is a BASIS in a \"conventional unit cell\" of BCC?? (Not in a...

Physics
Q

The table below shows the distribution of income in the U.S. in the year 1978. Table 19.1 Percent...

Economics
Q

3. A small town has only one doctor. He charges a rich person twice as much...

Economics
Q

Granval is concerned about the risks involved in launching a new business, especially the financial risks....

Operations Management
Q

Normal forces are applied uniformly over the surface of a spherical volume of water whose radius...

Physics
Q

Two horizontal parallel long wires each carrying charge of linear charge density Ao are placed...

Physics
Q

Solve the equation sin x 20 cos 42 for x where 0 x OA 22...

Geometry
Q

Given AB CB BM LAC and M is the midpoint of AC Prove A C...

Geometry
Q

There are approximately 7.5 x 1018 grains of sand on Earth. There are approximately 7*...

Basic Math
Q

Write a in the form a T aNN without finding T and N r t...

Calculus
Q

Adjusting Entries: Prepaid rent at 1/1/1X was $30,000. During 201X rent payments of $110,000 were...

Accounting
Q

K Arlington, Inc., an engineering consulting firm, uses the cash method of accounting and is...

Accounting