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: April $500,000 May $700,000 Budgeted sales (all on account) June $240,000 Total $1,440,000 From past experience, the company has learned that 20% of a month's sales are collected in the month of sale, another 60% are collected in the month following sale, and the remaining 20% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $430,000, and March sales totaled $460,000. 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 Total cash collections Silver Company Schedule of Expected Cash Collections April May June $ 100,000 300,000 140,000 100,000 420,000 48,000 140,000 144,000 48,000 $ 500,000 $ 700,000 $ 240,000 Total 100,000 440,000 568,000 284,000 48,000 1,440,000 $ 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 $ 28,000 38,400 66,400