Please help me with both questions for this one assignment. Sliver Company makes
ID: 2545197 • Letter: P
Question
Please help me with both questions for this one assignment.
Sliver 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 glven below April $430,000 $630,000 $200,000 $1,260,000 May June Total Budgeted sales (all on account) 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 sale. Bad debts are negligible and can be Ignored. February sales totaled $360,000, and March sales totaled $390,000 Requlred 1. Prepare a schedule of expected cash collections from sales, by month and In total, for the second quarter. 2 What Is the accounts recelvable balance on June 30th? Complete this question by entering your answers in the tabs below Required Required 2 Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter Schedule of Expected Cash Collections April May June Total February sales March sales April sales May sales June sales Total cash collectionsExplanation / Answer
Schedule of expected cash collections April May June Total February sales $360,000*15% = $54,000 $ 54,000 March sales $390,000*60% = $234,000 $390,000*15% = $58,500 $ 292,500 April sales $430,000*25% = $107,500 $430,000*60% = $258,000 $430,000*15% = $64,500 $ 430,000 May sales $630,000*25% = $157,500 $630,000*60% = $378,000 $ 535,500 June sales $200,000*25% = $50,000 $ 50,000 Total cash collections $ 395,500 $ 474,000 $ 492,500 Balance from May sales $630,000*15% = $94,500 Balance from June sales $200,000*75% = $150,000 Accounts receivable balance on June 30th $ 244,500