Silver Company makes a product that is very popular as a Mother's Day gift. Thus, peak sales occur in May of each year. These peak sales are shown in the following sales budget for the second quarter: Budgeted sales April $400,000 May $600,000 June $300,000 Total $1,300,000 From past experience, the company has learned that 25% of a month's sales are collected in the month of sale, another 65% are collected in the month following the sale, and the remaining 10% are collected in the second month following the sale Bad debts are negligible and can be ignored. February sales totalled $380,000, and March sales totalled $360,000 Required: 1. Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter February sales March sales April sales May sales June sales SILVER COMPANY Schedule of Expected Cash Collections Total cash collections $ April $ 0 May June Total $ 2. Assume that the company will prepare a budgeted balance sheet as of June 30. Compute the accounts receivable as of that date. Accounts receivable