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 July August September Budgeted Sales $ 200,000 400,000 600,000 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: In month of sale In month following sale In second month following sale Collections on Sales 60% 25% 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