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:
Budgeted sales (all on account) $ 579,634 $ 883,000 $492,000 $ 1,954,634
From past experience, the company has learned that 15% of a month's sales are collected in the month of sale, another 75% 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 $431,000, and March sales totaled $504,366.
Requirement 1:Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter. (Round your answer to the nearest dollar amount. Enter zero where required).
Requirement 2:Assume that the company will prepare a budgeted balance sheet as of June 30. Compute the accounts receivable as of that date.