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Silver Company makes a product with peak sales in May of each year. Its sales...

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Accounting

Silver Company makes a product with peak sales in May of each year. Its sales budget for the second quarter is given below:
April May June Total
Budgeted sales (all on account) $ 400,000 $ 600,000 $ 190,000 $ 1,190,000
The company estimates 30% of a months sales are collected in the month of sale, another 60% are collected in the month following sale, and the remaining 10% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $330,000, and March sales totaled $360,000.
Required:
Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter.
What is the accounts receivable balance on June 30th?

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