Bonita Landscaping Inc. is preparing its budget for the first quarter of $2025.$ The next step in the budgeting process is to prepare a cash receipts schedule and a cash payments schedule. To that end, the following information has been collected.

Clients usually pay $60\%$ of their fee in the month that service is performed, $30\%$ the month after, and $10\%$ the second month after receiving service.

Actual service revenue for $2024$ and expected service revenues for $2025$ are November $2024,$ $$72,000$; December $2024,$ $$81,000$; January $2025,$ $$90,000$; February $2025,$ $$108,000$; and March $2025,$ $$126,000.$

Purchases of landscaping supplies $($direct materials$)$ are paid $60\%$ in the month of purchase and $40\%$ the following month. Actual purchases for $2024$ and expected purchases for $2025$ are December $2024,$$$12,600$; January $2025,$$$10,800$; February $2025,$$$13,500$; and March $2025,$ $$16,200.$

$($a$)$

Prepare the following schedules for each month in the first quarter of $2025$ and for the quarter in total:

$(1)$ Expected collections from clients.

BONITA LANDSCAPING INC.

Schedule of Expected Collections From Clients

$2)$ Expected payments for landscaping supplies

B$)$ Determine the following balances at March $31,2025$

$1)$ accounts receivable

$2)$ Accounts payable