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	May	June	Total
Budgeted sales (all on account) ..................	$300,000	$500,000	$200,000	$1,000,000

From past experience, the company has learned that $20\%$20% of a month’s sales are collected in the month of sale, another $70\%$70% are collected in the month following sale, and the remaining $10\%$10% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $\$230,000,$$230,000, and March sales totaled $\$260,000$$260,000. 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 $30.$30. Compute the accounts receivable as of that date.