Spencer Company has budgeted sales for the upcoming months as follows:
February $606,000
March $616,000
April $649,000
May $678,000
70% of the sales are credit sales, the remainder are made in cash. Credit sales are collected 40% in the month of sale, 45% in the month following the sale, and 15% in the second month following the sale.
a. Compute Spencer's cash receipts for April. (Do not round intermediate calculations.)
b. Compute Spencer's cash receipts for May. (Do not round intermediate calculations.)
c. Compute the accounts receivable balance for May 31. (Do not round intermediate calculations.)