EXERCISE 8-1 Schedule of Expected Cash Collections [LO2] Midwest Products is a wholesale distributor of leaf rakes. 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 $600,000 $900,000 $500,000 $2,000,000 From past experience, the company has learned that 20% of a month's sales are collected in the month of sale, another 70% 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 $430,000, and June sales totaled $540,000. Required: 1. Prepare a schedule of expected cash collections from sales, by month and in total, for the third quarter Assume that the company will prepare a budgeted balance sheet as of September 30. Compute the accounts receivable as of that date. 2