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

Other questions asked by students

Operations Management
1.2K views

The Uniform Commercial Code: Negotiable Instruments and Secured Transactions Marvin Mower (MM) is a college student trying...

Biology
1.2K views

I have an issue understanding maternally and paternally imprinted gene questions. Here are some examples: 1. A phenotypically...

Medical Sciences
1.2K views

Select the MOST CORRECT answer. Countercurrent exchange... occurs in the gills of most fish when water...

Basic Math
1.2K views

Suppose there are n independent Gaussian r.v.s, X j ? N ( ? j , ?...

Biology
1.2K views

What is a parallel episode O Events that take place alongside the main plot O...

Physics
1.2K views

HIS SECOUNT COndins 20 questions Caur questommas 4 upons for correct answer Munupre Choice Questions...

Basic Math
1.2K views

The Berry Bakery makes a ratio of 3:4 cookies to muffins. If they make 12...

Statistics
1.2K views

Q1 The P A B 0 4000 and the P A and B 0 3600...

Accounting
1.2K views

How do I find codifications in FASB for equity investments 20%, 20%-50%, over 50% of...

Accounting
1.2K views

Which of the following should be deducted from net income in calculating net cash flow...

Accounting
1.2K views

ewman Corporation reported taxable income of $500,000 in 2020 and paid federal income taxes of...

Accounting
1.2K views

Question: In corporate governance, what is the primary function of an audit committee? ...