Prime profucts hopes tp borrow $$61000$ on april $1$ and repay it plus interest of $$960$ on June $30.$

a$.$ On April $1,$ the start of the loan period, the cash balance will be $$42,500.$ Accounts receivable on April $1$ will total $$165,200,$ of which $$141,600$ will be collected during April and $$18,880$ will be collected during May. The remainder will be uncollectible.

b$.$ The company estimates $30\%$ of a month's sales are collected in the month of sale, $60\%$ in the month following sale, and $8\%$ in the second month following sale. The other $2\%$ are bad debts that are never collected. Budgeted sales and expenses for the three$-$month perlod follow:

$\backslash$table$[[$Sales $($all on account$),$April,May,June$],[$Merchandise purchases,$$304,000,$$$532,000,$$$275,000$