Midwest Products is a wholesale distributor of leaf rakes. Thus, peak sales

Midwest Products is a wholesale distributor of leaf rakes. Thus, peak sales occur in August of each year as shown in the company’s sales budget for the third quarter, given below:

	July	August	September	Total
Budgeted sales (all on account)	$ 600,000	$ 900,000	$ 500,000	$ 2,000,000

From past experience, the company has learned that 20% of a month’s sales are collected in the month of sale, another 70% 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. May sales totaled $430,000, and June sales totaled $540,000.
Required:
1.	Prepare a schedule of expected cash collections from sales, by month and in total, for the third quarter. (Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)

Schedule of Expected Cash Collections
	July	August	September	Total
May sales	$ 43,000	$ 0	$ 0	$ 43,000
June sales	378,000	54,000	0	432,000
July sales	120,000	420,000	60,000	600,000
August sales	0	180,000	630,000	810,000
September sales	0	0	100,000	100,000
Total cash collections	$ 541,000	$ 654,000	$ 790,000	$ 1,985,000

2.	Assume that the company will prepare a budgeted balance sheet as of September 30. Compute the accounts receivable as of that date. (Do not round intermediate calculations. Omit the "$" sign in your response.)

Total accounts receivable

$ n/r