Cash Collections $-$ estimate of future cash inflows

ABC Company makes a product that is very popular amoung college students.

Thus, peak sales occur in August of each year, as shown in the company's sales budget for the third quarter given below:

July August September Total

Budgeted Sales $(all$ onaccount$)100,000,300,000,50,000,450,000$

From past experience, the company has learned that $0\%$ of a month's sales are collected in the month of sale,

$90\%$ are collected in the month following sale, and the remaining $10\%$ are collected in the second month following sale.

Bad debts are negligible and can be ignored. May sales totaled $$50,000,$ and June sales totaled $$75,000.$

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

b Budgeted sales peak in August, as noted in the given data. In which month do budgeted cash inflows peak?

c Assume that the company will prepare a budgeted balance sheet as of September $30.$

Compute the Accounts Receivable balance as of that date.