The budget director of Heathers Florist has prepared the following sales budget. The company had $300,000 in accounts receivable on July 1. Heathers Florist normally collects 100 percent of accounts receivable in the month following the month of sale.

Required

1. Complete the schedule of cash receipts by filling in the missing amounts.

2. Determine the amount of accounts receivable the company will report on its third quarter pro forma balance sheet.

   	July	August	September
   Sales Budget
   Cash sales	$75,000	$77,000	$88,000
   Sales on account	84,000	108,000	133,600
   Total budgeted sales	$159,000	$185,000	$221,600
   Schedule of Cash Receipts
   Current cash sales
   Plus: Collections from accounts receivable
   Total budgeted collections	$375,000	$161,000	$196,000