Midwest Products is a wholesale distributor of leaf rakes. Thus, peak sales occur in August of each year as shown in the company's sales budget for the third quarter, given below:

JULY 600000$

AUGUST 900000$

SEPTEMBER 500000 $

TOTAL 2000000 $

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. May sales totaled $430,000, and June sales totaled $540,000.

Required: 1. Prepare a schedule of expected cash collections from sales, by month and in total,

2. Assume that the company will prepare a budgeted balance sheet as of September 30. Compute the accounts receivable as of that date.