CNot secureTezto.mheducation.com/hm.tpx Question 2 (of 10) value 10.00 points Si
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CNot secureTezto.mheducation.com/hm.tpx Question 2 (of 10) value 10.00 points Siver 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 Total ne 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 remaining 15% are collected in the second month following 5380,000, and March sales totaled $410,000 sale. Bad debts are negligible and can be ignored. February sales totaled Required: 1 Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter Silver Company Schedule of Expected Cash Collections April May June Total February sales March sales April sales May sales June sales Total cash collections Type here to searchExplanation / Answer
Schedule of cash collection :
2) Calculate account receivable :
April May June Total February sales 380000*15%=57000 57000 March sales 410000*60%=246000 61500 307500 April sales 112500 270000 67500 450000 May sales 162500 390000 552500 June sales 62500 62500 Total cash collection 415500 494000 520000 1429500