Ag Corp makes a product that is very popular as a Mother$$s Day gift. Thus, peak sales occur in May of each year. These peak sales are shown in the following sales budget for the second quarter:

April May June Total

Budgeted sales $$500,000$ $$800,000$ $$300,000$ $$1,600,000$

From past experience, the company has learned that $20\%$ of a month$$s sales are collected in the month of sale, another $70\%$ are collected in the month following the sale, and the remaining $10\%$ are collected in the second month following the sale. Bad debts are negligible and can be ignored. February sales totalled $$350,000,$ and March sales totalled $$400,000.$

Required:

$1.$ Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter.

February sales

March sales

April sales

May sales

June sales

Total cash collections

$

$0$

CA

CA

$0$

for april may june

$2.$ Assume that the company will prepare a budgeted balance sheet as of June $30.$ Compute the accounts receivable as of that date.