Elite Electronics operates a mail-order business that sells electronic gadgets. It had sales of $480,000 in May. Because Elite Electronics is in the mail-order business, all sales are made on account. The company expects a 20 percent drop in sales for June. The balance in the Accounts Receivable account on May 31 was $65,000 and is budgeted to be $42,000 as of June 30.

Requirements:

1. Calculate the expected cash collections from accounts receivable during June for Elite Electronics.
2. Discuss how market trends might affect the expected sales decline in June for Elite Electronics.