From past experience the company has learned that 20 of a

Reference no: EM13597543

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:

April May June Total
Budgeted sales (all on account) $300,000 $500,000 $200,000 $1,000,000

From past experience, the company has learned that 20% of a month's sales are collected in the month of the sale, another 70% are collected in the month following the sale, and the remaining 10% are collected in the second month following the sale. Bad debts are negligible and can be ignored. February sales totaled $230,000, and March sales totaled $260,000.

Required: YOU MUST SHOW YOUR WORK
1. Prepare a schedule of expected cash collections from sales, by month and in total for the second quarter.

2. Assume that the company will prepare a budgeted balance sheet as of June 30. Compute the accounts receivable as of that date.

Reference no: EM13597543

Questions Cloud

The entrepreneur who founded the company is convinced that : commercial services.com corporation provides business-to-business services on the internet. data concerning the most

Indicate how each of the following items would be shown on : indicate how each of the following items would be shown on the bank reconciliation for shaggy company at december 31

During the current month the factory payroll of 180000 was : canberra company uses a job order cost accounting system. during the current month the factory payroll of 180000 was

Simpson auto body repair purchased 20000 of machinery the : simpson auto body repair purchased 20000 of machinery. the company paid 8000 in cash at the time of the purchase and

From past experience the company has learned that 20 of a : silver company makes a product that is very popular as a mothers day gift. thus peak sales occur in may of each year as

Partridge co can further process product j to produce : partridge co. can further process product j to produce product d. product j is currently selling for 21 per pound and

Birch company normally produces and sells 39000 units of : birch company normally produces and sells 39000 units of rg-6 each month. rg-6 is a small electrical relay used as a

A business is operating at 70 of capacity and is currently : a business is operating at 70 of capacity and is currently purchasing a part used in its manufacturing operations for

In my opinion we ought to stop making our own drums and : in my opinion we ought to stop making our own drums and accept that outside suppliers offer said wim niewindt managing

User Account

All Pages