Water Sport Inc. manufactures a small personal water tube used for children learning to swim. Management is now preparing detailed budgets for the third quarter, July through September, and has assembled the following information to assist a. The Marketing Department has estimated sales as follows for the remainder of the year (number of water tubes): July August September 6,900 October 5,400 November 2,900 4,400 December 2,400 3,300 The selling price of the water tubes is $60. b. All sales are on account. Based on past experience, sales are expected to be collected in the following pattern: 50% in the month of sale 45% in the month following sale 5% uncollectible The beginning accounts receivable balance (excluding uncollectible amounts) on July 1 will be $162,000. c. The company maintains finished goods inventories equal to 20% of the following month's sales. The inventory of finished goods on July 1 will be 1,380 units.