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 below

budgeted sales on all accounts April 370,000 May 570,000 June 180,000 Total 1,120,000. From past experience the company has learned that 25% of a months sales are collected in the month of sale, another 65% are collected in the second month following sales. Bad debts are negligible and can be ignored. February sales totaled 3000,000 and march sales totaled 330,000.

Required

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

2. Assume that the company will prepare a budgeted balance sheet as of June 30th, compute the accounts recievable as of that date

Also, the remaining 10% are collected in the secon month following the sale