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?
Exercise 8-1 Schedule of Expected Cash Collections [LO8-2]
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:
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 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.
Requirement 1
Schedule of Expected Cash Collections | ||||
April | May | June | Total | |
February Sales | $ 23,000 | $ 23,000 | ||
March Sales | $ 182,000 | $ 26,000 | $ 208,000 | |
April Sales | $ 60,000 | $ 210,000 | $ 30,000 | $ 300,000 |
May Sales | $ 100,000 | $ 350,000 | $ 450,000 | |
June Sales | $ 40,000 | $ 40,000 | ||
Total Cash Collection | $ 265,000 | $ 336,000 | $ 420,000 | $ 1,021,000 |
Requirement 2
Total Receivables at June 30 | $ 210,000 |
Working
Silver company | |
Accounts receivables at june 30 | |
May sales | $ 50,000 |
June sales | $ 160,000 |
Total Accounts receivables at june 30 | $ 210,000 |
.
Accounts Receivables Balance | ||
Balance of may sales | (10% of sale) | $ 50,000 |
Balance of June Sale | (80% of sale) | $ 160,000 |
Total Receivables at June 30 | $ 210,000 |
.
Schedule of Expected Cash Collections | ||||
April | May | June | ||
February Sales | =230000*10% | |||
March Sales | =260000*70% | =260000*10% | ||
April Sales | =300000*20% | =300000*70% | =300000*10% | |
May Sales | =500000*20% | =500000*70% | ||
June Sales | =200000*20% | |||
Required: 1. Prepare a schedule of expected cash collections from sales, by month and in total,...
ises connect EXERCISE 8-1 Schedule of Expected Cash Collections L08-2 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: May June Total April $200,000 $1,000,000 $300,000 $500,000 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...
Exercise 8-1 Schedule of Expected Cash Collections (LO8-2) 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: Budgeted sales (all on account) April $350,000 May $530,000 June $210,000 Total $1,070,000 From past experience, the company has learned that 25% of a month's sales are collected in the month of sale, another 60% are...
exercise 8-1 (two parts) Exerclse 8-1 Schedule of Expected Cash Collections [LO8-21 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 Total $1,168, e0e April $380, eee May $58e, eee June $200,eee Budgeted sales (all on account) From past experience, the company has learned that 20 % of a month's sales are collected...
Exercise 8-1 Schedule of Expected Cash Collections [LO8-2] 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: Budgeted sales (all on account) April $450,000 May $650,000 June $250,000 Total $1,350,000 From past experience, the company has learned that 25% of a month's sales are collected in the month of sale, another 60% are...
Saved Chapter08-Homework(E8-1,2,3,578) Exercise 8-1 Schedule of Expected Cash Collections [LO8-2] 1 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 10 points April $400,000 Total $1,190,000 May $600,000 June Budgeted sales (all on account) $190,000 Sipped From past experience, the company has learned that 30 % of a month's sales are collected in...
Exercise 8-1 Schedule of Expected Cash Collections [LO8-2] 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: April May June Total Budgeted sales (all on account) $410,000 $610,000 $210,000 $1,230,000 From past experience, the company has learned that 25% of a month’s sales are collected in the month of sale, another 60% are...
1 Exercise 8-1 Schedule of Expected Cash Collections [LO8-2) 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: 1.48 points Total April May #510,000 June $160,000 Budgeted sales (all on acoount) $980,000 $310.000 ellook Hint the month of sale, another 60 % are From past experience, the company has leamed that 25% of...
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 June Budgeted sales (all on account) May $500,000 Total $1,000,000 $300,000 $200,000 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...
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 the company's sales budget for the second quarter given below. April May June Total Budgeted sales (all on $470,000 $670,880 $230,000 $1,370,000 account) From past experience, the company has learned that 25% of a month's sales are collected in the month of sale, another 65% are collected in the month following sale, and the remaining...
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 $300,000 May $500,000 June $200,000 Total $1,000,000 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...