Exercise 8-1 (Static) 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: Budgeted sales (all on account) April $300,000 May $500,000 June $200,000 Total $1,000,000 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. February sales totaled $230,000, and March sales totaled $260,000. 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? Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter. Schedule of Expected Cash Collections Required 1 Required 2 April May June Total 59 $ 0 February sales March sales April sales May sales June sales Total cash collections $ 0 $ 0 $ 0 A O 0 0 0 Required 1 Required 2 What is the accounts receivable balance on June 30th? Total accounts receivable at June 30