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)	$400,000	$600,000	$190,000	$1,190,000

From past experience, the company has learned that 30% of a months sales are collected in the month of sale, another 60% 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. February sales totaled $330,000, and March sales totaled $360,000.

Required

1. Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter.

Silver Company - Schedule of Expected Cash Collections

	April	May	June	Total
Feb 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.

Silver Company - Accounts Receivable at June 30

May Sales
June Sales
Total Accounts Receivable at June 30