Question

Silver Company makes a product that is very popular as a Mother's Day gitt. Thus, peak sales occur in May of each year, as shown in the company's sales budget for the second quarter given below: From past experience, the company has learned that 30% of a month's sales are collected in the month of sale, another 65% are collected in the month following sale, and the remaining 5% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $250.000, and March sales totaled $280.000. 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 30 th? Complete this question by entering your answers in the tabs below. Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter. 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: From past experience, the company has leamed that 30% of a month's sales are collected in the month of sale, another 65% are collected in the month following sale, and the remaining 5% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $250,000, and March sales totaled $280,000. 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 30 th? Complete this question by entering your answers in the tabs below. What is the accounts receivable balance on June 30th?

Answer 1

To calculate the expected cash collections from sales for the second quarter, apply the given collection percentages to each month's sales and add up the amounts collected. The accounts receivable balance on June 30th can be found by subtracting the total cash collections from the total sales for April, May, and June.

Step-by-step explanation:

To calculate the expected cash collections from sales for the second quarter, we need to apply the given collection percentages to each month's sales. Here is the breakdown:

February sales: $250,000 x 30% = $75,000 collected in February, $250,000 x 65% = $162,500 collected in March, $250,000 x 5% = $12,500 collected in April.

March sales: $280,000 x 30% = $84,000 collected in March, $280,000 x 65% = $182,000 collected in April, $280,000 x 5% = $14,000 collected in May.

To find the total cash collections for each month, simply add up the amounts collected from each month's sales. Finally, to find the accounts receivable balance on June 30th, subtract the total cash collections from the total sales for April, May, and June.

Answer 2

To calculate the expected cash collections from sales for each month in the second quarter and in total, we need to calculate the collection percentages for each month and sum up the cash collections for each month. The accounts receivable balance on June 30th can be calculated by subtracting the total cash collections for the second quarter from the total sales.

Step-by-step explanation:

To prepare a schedule of expected cash collections from sales, we need to calculate the collection percentages for each month. According to the information given, 30% of a month's sales are collected in the month of sale, another 65% are collected in the month following sale, and the remaining 5% are collected in the second month following sale.

Based on this information, to calculate the expected cash collections from sales for each month in the second quarter and in total, we can use the following steps:

1. Calculate the cash collections for each month based on the sales amount.
2. Sum up the cash collections for each month to get the total collections for the second quarter.

For the accounts receivable balance on June 30th, we need to subtract the total cash collections for the second quarter from the total sales.

By following these steps, you can accurately calculate the expected cash collections and the accounts receivable balance on June 30th.