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

Budgeted sales (all on account)

$300,000 April

$500,000 May

$200,000 June

$1,000,000 Total

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. February sales totaled $230,000, and March sales totaled $260,000.

Required:

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

2. Assume that the company will construct a budgeted balance sheet as of June 30. Compute the accounts receivable as of that date.