$(32$ marks$)$

Question $1$

$(12$ marks$)$

Diamond Inc. is a wholesale distributor of Skechers shoes. The company's sales budget for the third quarter is given below:

July August September

Budgeted Sales $($All on account$)$ $$88,700$$$94,000$$$83,500$

From past experience, the company has learned that $40\%$ of a month's sales are collected in the month of sale, $40\%$ are collected in the month following sale, and the remaining $20\%$ are collected in the second month following sale. May sales totaled $$80,000,$ and June sales totaled $$73,000.$

Required:

Prepare a schedule of expected cash collections from sales for each month $($July$,$ August and September$)$ and the quarter total.