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

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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) $ 500,000 $ 700,000 $ 240,000 $ 1,440,000
From past experience, the company has learned that 20% of a months 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:
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 30th?

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