Prepare the first budgeting period only

EXERCISE 8-1 Schedule of Expected Cash Collections LO8-2 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: Total Budgeted sales (all on account).. $300,000 $500,000 $200,000 $1,000,000 April May June ........ 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