(Cash collections, accounts receivable) Atlanta Waterworks is developing a forecast of June 2001 cash receipts from sales. Total sales for June 2001 are expected to be $650,000. Of each month’s sales, 75 percent is expected to be on credit. The Accounts Receivable balance at May 31 is $171,000 of which $135,000 represents the remainder of May credit sales. There are no receivables from months prior to April 2001. Atlanta Waterworks has an established collection pattern for credit sales of 60 percent in the month of sale, 25 percent in the month following the sale, and 15 percent in the second month following the sale. Atlanta Waterworks has no uncollectible accounts.

a. What were total sales for April 2001?

b. What were credit sales for May 2001?

c. What are projected cash collections for June 2001?

d. What will be the balance of Accounts Receivable at June 30, 2001?