Part of the Question:
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:
                                                      April       May        June           Total
Budgeted sales (all on account) $310,000 $510,000	$160,000 $980,00
Answer:
1. A Schedule of Expected Cash Collections from Sales:
                                             April          May        June           Total for the
                                                                                                 Quarter
25% sales month           $77,500    $127,500   $40,000     $245,000
60% 2nd month            222,000      186,000   306,000         714,000
15%  3rd month                51,000       55,500      46,500        153,000
Total cash collections $350,500  $369,000 $392,500     $1,112,000
2. Accounts Receivable balance on June 30th:
Total beginning balance      $328,500
Total quarter sales               $980,000
Total due from customers $1,308,500
Cash receipts for quarter    $1,112,000
Balance on June 30th          $196,500
Explanation:
a) Data and Calculations:
                Feb.         Mar.            April          May          June       Total for the
                                                                                                        Quarter
Sales   $340,000  $370,000 $310,000 $510,000  $160,000  $980,00
Cash: 
25% sales month                    $77,500   $127,500   $40,000  $245,000
60% 2nd month     204,000  222,000     186,000   306,000     714,000
15%  3rd month                          51,000      55,500     46,500     153,000
Total cash collections          $350,500  $369,000 $392,500 $1,112,000
b) Account Receivable balance
April 1, Beginning balance       $51,000 from February
April 1, Beginning balance    $277,500 from March
Total beginning balance       $328,500
Total quarter sales                $980,000
Total due from customers $1,308,500
Cash receipts for quarter    $1,112,000
Balance on June 30th          $196,500
c)  The accounts receivable balance is the difference between the beginning balance of $328,500, the sales on account for the quarter of $1,308,500, and the cash receipts from customers for the quarter of $1,112,000.  This gives a balance of $196,500, which represents 75% of June sales of $120,000 and 15% of May Sales of $76,500.