Folkes,Inc Has Prepared a Sales Budget for the Second Quarter

Folkes,Inc has prepared a sales budget for the second quarter as shown below:

$$\begin{array} { | l | r | } \hline & \text { Budgeted Sales } \\\hline \text { April } & \$ 400,000 \\\hline \text { May } & 500,000 \\\hline \text { June } & 600,000 \\\hline\end{array}$$
The company is in the process of preparing a cash budget for the second quarter.To this end,the following information has been assembled:
$$\begin{array} { | l | r | } \hline & \text { Colections on Sales } \\\hline \text { In month of sale } & 70 \% \\\hline \text { In month following sale } & 25 \% \\\hline \text { In second month following sale } & 5 \% \\\hline\end{array}$$
The company gives a 1% cash discount to customers paying in the month of their sale.Records show past sales to be: January $300,000,February $340,000,and March $360,000.Required:
Prepare a cash receipts budget for the third quarter.

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