(Cash collections, accounts receivable) Leon’s Club is developing a forecast for June 2006 cash receipts from sales. Total sales for June 2006 are ex¬ pected to be $850,000. Of each month’s sales, 75 percent is expected to be on credit. The Accounts Receivable balance at May 31 is $173,250 of which $135,000 represents the remainder of May credit sales. There are no receiv¬ ables from months prior to April 2006. Leon’s Club’s collection pattern for credit sales is 60 percent in the month of sale, 25 percent in the month fol¬ lowing the sale, and 15 percent in the second month following the sale. Leon’s Club has no uncollectible accounts.

a. What were total sales for April 2006?

b. What were credit sales for May 2006?

c. What are projected cash collections for June 2006?

d. What will be the balance of Accounts Receivable at June 30, 2006?

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