Question 3: Peak sales for TT Studios, a wholesale distributor of professional cameras, occur in November. The company's sales budget for the fourth quarter showing these peak sales is given below: October November December Total Budgeted sales (all $400,000 $800,000 $700,000 $1,900,000 on account) From past experience, the company has learned that 25% of a month's sales are collected in the month of sale, another 70% are collected in the month following sale, and the remaining 5% are collected in the second month following sale. Bad debts are negligible and can be ignored. August sales totalled $70,000, and September sales totalled $180.000 Required: 1. Prepare a schedule of expected cash collections from sales, by month and in total, for the third quarter 2. Assume that the company will prepare a budgeted balance sheet as of December 31. Compute the accounts receivable as of that date. Page 24 a