Green corporation is a merchandising firm. It has planned the following sales for the next three months:

April May June Total budgeted sales 70,000 90,000 60,000

Sales are made on account. Green's managers now that a month's sales on account are collected following this pattern: Collected in the month of sales 70% Collected in the first month following the month of sale 20% Collected in the second month following the month of sale 8% Uncollectible 2%

The uncollectible amount is written off at the end of the second month following the month of sale. For example, the uncollectible amount from March sales will be written off at the end of May. Assume that the accounts receivable balance on April 1 is $21,000. Of this amount, $15,000 represents uncollected March sales and $6,000 represents uncollected February sales.

Answer the following two questions: 1) Compute the budgeted cash receipts for April, May, and June. 2) Compute the balance of accounts receivable on June 30.