Solution-What is the accounts receivable balance on June

What is the accounts receivable balance on June

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Reference no: EM133067475

Question - 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)	$460,000	$660,000	$210,000	$1,330,000

From past experience, the company has learned that 20% of a month's 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 $390,000, and March sales totaled $420,000.

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 30th?

Reference no: EM133067475

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What is the accounts receivable balance on June

Reference no: EM133067475

Reference no: EM133067475

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