James, Inc. makes a product that has peak sales in September of each year. The company has prepared a sales budget for the third quarter as shown below:

Month	Budgeted Sales
July	$	200,000
August		400,000
September		600,000

The company is in the process of preparing a cash budget for the third quarter and must determine the expected cash collections by month. To this end, the following information has been assembled:

	Collections on Sales
In month of sale		60	%
In month following sale		25	%
In second month following sale		15	%

The company gives a 3% cash discount to customers paying in the month of their sale. The company charges 2% interest to customers who pay in the second month following their sales. The accounts receivable balance to start the quarter is $150,000: $35,000 from May's sales and $115,000 from June's sales. Required: Prepare a schedule of cash receipts for the third quarter.