EXERCISE 9-1 Schedule of Foxpected Cash Collections (102) Peak sales for Northern Un, a wholesale distributor of snow shovels occur in November. The company sales budget for the fourth quarter showing these peak sales is glven below. October Novam. Decamber Total Budgeted sales (onecourt)... $100000 5800000 $700.000 $1900.000 From past experience the company has learned that 25% of a month's sales are collected in the month of sale another 70% 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. August sales totalled $70,000, and September sales totalled $180.000. Required: 1. Prepare a schedule of expected cash collections from sales by month and in total, for the third quarter. 2 Assume that the company will prepare a budgeted balance sheet as of September 30. Compute the accounts recelvable as of that date