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. Budgeted sales (all on account) April $470,000 May $670, eee June $230,eee Total $1,370,000 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 10% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $400,000, and March sales totaled $430,000. 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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter.

Answer 1

Solution:

1.

Cash collections	April	May	june	Total
Feb	40000			40000
March	279500	43000		322500
April	117500	305500	47000	470000
May		167500	435500	603000
June			57500	57500
	437000	516000	540000	1493000

2.

	May	June	Total
Accounts receivbale	67000	172500	239500

Copy of HomeworkLib2 - Microsoft Excel (Product Activation Failed) X File Home Insert Page Layout Formulas Data Review View X * Cut AutoSum Calibri 11 A A E' Wrap Text General Normal Bad Good Ea Copy Fill Paste B 1 U- A, *Merge & Center GP, % Calculation Conditional Format as Neutral Formatting Table Check Cell Insert Delete Format Format Painter 2 Clear Sort & Find & Filter - Select Editing Clipboard Font Alignment Number Styles Cells 177 fac A B с D E F G H I J K L M N O P. Q R 64 65 66 67 68 Feb March 4,00,000 April 4,30,000 May 4,70,000 june Total 6,70,000 2,30,000 22,00,000 Budgeted sales ljune Total Cash collections April Feb March April May June |May 40000 279500 117500 43000 305500 167500 47000 435500 57500 540000 40000 322500 470000 603000 57500 1493000 437000 516000 May June 67000 Total 172500 Accounts receivb 239500 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 > Sheet38 Sheet39 Sheet40 Sheet41 Sheet42 Sheet43 Sheet44 Sheet45 Sheet46 Sheet47 Sheet48 Sheet49 Sheet50 III Ready M 110% U 1 Type here to search O I 48% O » ENG 00:11 21-09-2020

9 Copy of HomeworkLib2 - Microsoft Excel (Product Activation Failed) X File Home Insert Page Layout Formulas Data Review View X * Cut AutoSum Calibri 11 A A Wrap Text General Normal Bad Good Ea Copy Fill Paste B 1 U- A, Merge & Center GP, % Calculation Conditional Format as Neutral Formatting Table Check Cell Insert Delete Format Format Painter 2 Clear Sort & Find & Filter - Select Editing Clipboard Font Alignment Number Styles Cells 176 fac A B С C D E F G Н. I J K 64 65 66 67 68 Feb 400000 March 430000 April 470000 May 670000 june 230000 Total =SUM(C67:667) Budgeted sales |May June Cash collections Feb March April May April =C67*10% =D67*65% =E67*25% 69 70 71 72 73 74 75 76 77 78 79 80 =D67*10% =E67*65% =F67* 25% =E67*10% =F67*65% =667*25% =SUM(E71:E75) Total =SUM(C71:E71) =SUM(C72:E72) =SUM(C73:E73) =SUM(C74:E74) =SUM(C75:E75) =SUM(C76:876) June =SUM(C71:C75) =SUM(D71:D75) |May Accounts receivbale =F67*10% June =(G67*65%) + (G67*10%) Total =SUM(C79:079) 81 82 83 84 85 86 87 88 89 90 91 92 > Sheet38 Sheet39 Sheet40 Sheet41 Sheet42 Sheet43 Sheet44 Sheet45 Sheet46 Sheet47 Sheet48 Sheet49 Sheet50 Ready M 110% U 1 Type here to search O I 48% D (ENG 00:12 21-09-2020