Blair is a retailer of assorted baby products. The sales forecast for the coming months is:

Revenues

April (actual)

$

181,000

May (actual)

$

202,000

June

$

221,000

July

$

250,000

August

$

233,000

All sales are credit sales. The cash collection pattern is 20% in the month of sale, 65% in the month following the sale, and the remainder in the second month following the sale. Accounts receivable on June 1 were $188,750.

a.

Prepare a cash receipts schedule for the period June through August (by month).

b.	What will the Accounts Receivable balance be on August 31?