The Hodson Company is preparing a cash receipts schedule for the third quarter of 2005.

Sales on account for May and June 2005 are expected to be \($100,000\) and \($120,000\), respectively.

Budgeted sales for the third quarter of 2005 are presented here.

Expected collection pattern for sales on account:
10 percent in the month of sale 60 percent in the month following the sale 30 percent in the second month following the sale 0 percent uncollectible Required: Prepare a cash receipts schedule for the third quarter of 2005.

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The Hodson Company Sales Budget For the Quarter Ended September 30, 2005 Budgeted Cash Sales Budgeted Sales on Account Total Sales Jul $ 8,000 Aug $ 9,000 Sep $ 11,000 80,000 $88,000 90,000 $99,000 110,000 $121,000 Total $ 28,000 280,000 $308,000