Exercise 7-1 Schedule of Expected Cash Collections [LO7-2] Silver Company makes a product that is very popular as a Mothers Day gift. Thus, peak sales occur in May of each year, as shown in the companys sales budget for the second quarter given below: April May June Total Budgeted sales (all on account) $340,000 $540,000 $170,000 $1,050,000 From past experience, the company has learned that 20% of a months sales are collected in the month of sale, another 75% are collected in the month following sale, and the remaining 5% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $270,000, and March sales totaled $300,000.

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

.	Assume that the company will prepare a budgeted balance sheet as of June 30. Compute the accounts receivable as of that date.