The budget director of Heathers Florist has prepared the following sales budget. The company had $350,000 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.

1.

	July	August	September
Sales Budget
Cash sales	$67,000	$67,000	$76,000
Sales on account	93,000	99,000	136,600
Total budgeted sales	$160,000	$166,000	$212,600
Schedule of Cash Receipts
Current cash sales
Plus: Collections from accounts receivable
Total budgeted collections	$417,000	$160,000	$175,000

2.

Accounts Receivable