Problem 8 (Cash Receipt): Experience has shown that 20% percent of Gapan Company sales are for cash. Monthly sales are budgeted as follows: P280,000 for October, P240,000 for November, and P320,000 for December. The rest are on credit with 70% of the credit sales are collected in the month of sale, 20% in the month following sale, and 5% in the second month following sale. The remainder is expected to be uncollectible. Required: 1. Prepare a schedule of expected cash collections for the month of December. 2. Determine the balance of the accounts receivable at December 31.