Question

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EXERCISE 8-1 Schedule of Expected Cash Collections Log-2
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:
June
May
April
Total
$300,000
$500,000 $200,000 $1,000,000
Budgeted sales (all on account).
From past experience, the company has learned that 20% of a month's sales are collected in
the month of sale, another 70% are collected in the month following sale, and the remaining 10%
are collected in the second month following sale. Bad debts are negligible and can be ignored.
February sales totaled $230,000, and March sales totaled $260,000.
Pequired:
1. Using Schedule 1 as your guide, 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?​

Answer 1

Answer:

what is this

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