Please answer exercise 8-1

All applicable exercises are available with McGraw-Hill's Connect Accounting. EXERCISE 81 Schedule of Expected Cash Collections (L08-2] Silver Company makes a product that is very popular as a Mother's Day gift. Thus, peak sales occur in May of each year, as shown in the company's sales budget for the second quarter given below: May Total April $300,000 June $200,000 Budgeted sales (all on account) $500,000 $1,000,000 Master Budgeting 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. February sales totaled $230,000, and March sales totaled $260,000. Required: 1. Prepare a schedule of expected cash collections from sales, by month and in total, for the sec- ond quarter. 2. Assume that the company will prepare a budgeted balance sheet as of June 30. Compute the accounts receivable as of that date