Ross Corporation makes all sales on account. The June 30th balance sheet balance in its accounts receivable is $400,000, of which $240,000 pertain to sales that were made during June. Budgeted sales for July are $1,250,000.

Ross collects

70% of sales in the month of sale;

20% in the following month;

and the final 10% in the second month after the sale.

What are Ross's budgeted collections for July?

[PLEASE PROVIDE EXPLANATION WITH FORMULAS USED AND STEPS TO ARRIVE AT THE CORRECT ANSWER]