Question

(The following information applies to the questions displayed below.] 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: Budgeted sales (all on account) April $ 554,000 May $776,000 June $476,000 Total $1,806,000 From past experience, the company has learned that 30% of a month's sales are collected in the month of sale, another 65% are collected in the month following sale, and the remaining 5% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $411,000, and March sales totaled $504,000.

Answer 1

February Amount ($1 March April May June SS4000 776000 776000 411000 504000 •Forecasted or Budgeted Sales • Actual Sales • Collection from Sales during the month. 30% • 65% Collect in following Month •57 Collected in second month of following month 133300 1S 1200 166.000 232800 142800 26715032760 360100 304400 20950 29200 27700 38800 123000 43890 S19000 620600636000 # Total Collection from Sales during the mo thes.