Exercise 8-1 (Algo) Schedule of Expected Cash Collections [LO8-2] Silver Company makes a product that is very popular as a Mother's Day gift. Thus, peak sales occur in May of each year, as shown in the company's sales budget for the second quarter given below: June April $430,000 May $630,000 Total $1,260,000 Budgeted sales (all on account) $200,000 From past experience, the company has learned that 25% of a month's sales are collected in the month of sale, another 60% are collected in the month following sale, and the remaining 15% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $360,000, and March sales totaled $390,000. Required: 1. Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter. 2. What is the accounts receivable balance on June 30th? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter. Schedule of Expected Cash Collections April May June Total $ 0 $ 0 0 $ 0% February sales March sales April sales May sales 0 $ 0 % 0 X 0 107,500 0 X 107,500 258,000 157,500 0 X 415,500 June sales 64,500 50,000 378,000 $ 535,500 492,500 $ 1,015,500 Total cash collections $430,000 $ 50,000 Required 1 Required 2 > Required 1 Required 2 What is the accounts receivable balance on June 30th? Total accounts receivable at June 30 $ 1,015,700