Q.7 Silver Company makes a product that is very popular as a Mother's Day gift. Thus, peak sales occur in May of each year. These peak sales are shown in the company's sales budget for the second quarter given below (all sales are on account) Budgeted sales April Rs. 300,000 May Rs. 500,000 June Rs. 200,000 Total Rs. 1,000,000 From past experience the company has learned that 20% of a month's sales are collected in the month of sale, another 65% are collected in the month following sale, and the remaining 15% are collected in the second month following sale. February sales totaled Rs. 230,000 and March sales totaled Rs. 260,000. You are required to: (1) Prepare a schedule of expected cash collection from sales, by month and in total, for the second quarter. (2) Compute the amount of accounts receivable, assuming that the company will prepare a budgeted balance sheet as of June 30.