BRIEF EXERCISE 7-2 Schedule of Expected Cash Collections (CC5) SUVer Company makes a product that is very popular as a Mother's Day gift. Thus, Peak accum May of each year. These peak sales are shown in the following sales budget for the sea Total May April $400,000 June $300,000 $1,100,000 Budgeted sales ..... $600,000 From past experience, the company has learned that 25% of a month's sales are collected in the month of sale, that another 65% is collected in the month following sale, and that the remaining 10% 18 collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totalled $380,000, and March sales totalled $360,000. Required: 1. Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter. 2. Assume that the company will prepare a budgeted balance sheet as of June 30. Compute the accounts receivable as of that date