Silver Company makes a product that is very popular as a Mothers Day gift. Thus, peak sales occur in May of each year, as shown in the companys sales budget for the second quarter given below:

	April	May	June	Total
Budgeted sales (all on account)	$500,000	$700,000	$240,000	$1,440,000

From past experience the company has learned hat 20% o a month's sales are collected inthe month ofsale, another 60% are collected in the month following sale and the remaining 20% are collected in the second month ollowing sale. Bad debts are negligible and can be ignored. ebruary sa s totaled $4 0 00 . and March ales tale 00. Required 1. Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter. Schedule of Expected Cash Collections April May June Total February sales March sales April sales May sales June sales Total cash collections 2. Assume that the company will prepare a budgeted balance sheet as of June 30. Compute the accounts receivable as of that date May sales June sales Total accounts receivable at June 30