Exercise 8-1 Schedule of Expected Cash Collections [LO2]

[The following information applies to the questions displayed below.]

Midwest Products is a wholesale distributor of leaf rakes. Thus, peak sales occur in August of each year as shown in the companys sales budget for the third quarter, given below:

	July	August	September	Total
Budgeted sales (all on account)	$557,000	$ 793,000	$ 478,000	$1,828,000

From past experience, the company has learned that 15% of a months sales are collected in the month of sale, another 75% 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 $425,000, and June sales totaled $505,000.

Exercise 8-1 Part 2

2.	Assume that the company will prepare a budgeted balance sheet as of September 30. Compute the accounts receivable as of that date. (Do not round intermediate calculations. Omit the "$" sign in your response.)

Total accounts receivable

$