Quiz-3: Peak sales for Eastern Products, a wholesale distributor of leaf rakes, occur in August. The company's sales budget for the third quarter showing these peak sales is given below. From past experience, the company has learned that 20% of a month's sales are collected in the month of sale, another 70% are collected in the month following sale, and the remaining 10% are collected in the second month following sale. Bad debts are negligible and can be ignored. May sales totalled \$430,000, and June sales totalled $$50,000. Required: a) Prepare a schedule of expected cash collections from sales, by month and in total, for the third quarter. b) Assume that the company will prepare a budgeted balance sheet as of September 30. Compute the accounts receivable as of that date