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:
aprilmayjunetotal
budgeted
sales (all on account) $390,000$590,000$230,000$1,210,000< br />
from past experience, the company has learned that 25% of a month’s sales are collected in the month of sale, another 60% are collected in the month following sale, and the remaining 15% are collected in the second month following sale. bad debts are negligible and can be ignored. february sales totaled $320,000, and march sales totaled $350,000.

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. compute the accounts receivable as of that date,