Preparing a Schedule of Expected Cash Collections Silver Company makes a product that is very popular as a Mothers Day gift. Thus, peak sales occur in May of each year. These peak sales are shown in the following sales budget for the second quarter: April May June Total Budgeted sales $400,000 $600,000 $300,000 $1,300,000 Page 394 From past experience, the company has learned that 25% of a months sales are collected in the month of sale, another 65% are collected in the month following the sale, and the remaining 10% are collected in the second month following the sale. Bad debts are negligible and can be ignored. February sales totalled $380,000, and March sales totalled $360,000. Required: 1. Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter. 2. Assume that the company will prepare a budgeted balance sheet as of June 30. Compute the accounts receivable as of that date. 1. Silver Company Schedule of Expected Cash Collections April May June Total February sales: March sales: April sales: May sales: June sales: Total cash collections From May sales: $ From June sales: $ Total accounts receivable at June 30 Accounts receivable at June 30