Let's break down the problem step by step, preparing the schedule of expected cash collections from sales for the second quarter and determining the accounts receivable balance on June 30th.

Sales Data and Percentages for Collection:

1. Sales:

   • February: $290,000
   • March: $320,000
   • April: $360,000
   • May: $560,000
   • June: $220,000

2. Collection Percentages:

   • 30% collected in the month of sale.
   • 60% collected in the month after the sale.
   • 10% collected two months after the sale.

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Schedule of Expected Cash Collections:

Month	From February	From March	From April	From May	From June	Total Cash Collections
April	$29,000	$192,000	$108,000	-	-	$329,000
May	-	$32,000	$216,000	$168,000	-	$416,000
June	-	-	$36,000	$336,000	$66,000	$438,000
Total	$29,000	$224,000	$360,000	$504,000	$66,000	$1,183,000

Breakdown of Collections:

• From February sales ($290,000):

  • 10% collected in April: $290,000 \times 10\% = 29,000$

• From March sales ($320,000):

  • 60% collected in April: $320,000 \times 60\% = 192,000$
  • 10% collected in May: $320,000 \times 10\% = 32,000$

• From April sales ($360,000):

  • 30% collected in April: $360,000 \times 30\% = 108,000$
  • 60% collected in May: $360,000 \times 60\% = 216,000$
  • 10% collected in June: $360,000 \times 10\% = 36,000$

• From May sales ($560,000):

  • 30% collected in May: $560,000 \times 30\% = 168,000$
  • 60% collected in June: $560,000 \times 60\% = 336,000$

• From June sales ($220,000):

  • 30% collected in June: $220,000 \times 30\% = 66,000$

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Accounts Receivable Balance on June 30th:

• From May sales ($560,000):

  • 10% still uncollected in June, will be collected in July: $560,000 \times 10\% = 56,000$

• From June sales ($220,000):

  • 70% remains uncollected at the end of June:
    • 60% to be collected in July: $220,000 \times 60\% = 132,000$
    • 10% to be collected in August: $220,000 \times 10\% = 22,000$

Thus, the total accounts receivable balance on June 30th is: $\text{A/R on June 30} = 56,000 \, (\text{from May}) + 132,000 \, (\text{from June for July}) + 22,000 \, (\text{from June for August}) = 210,000$

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Final Answer Summary:

1. Total cash collections for the second quarter: $1,183,000
2. Accounts receivable balance on June 30th: $210,000

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Do you want any further explanation, or have any specific questions?

Here are 5 additional questions related to this topic:

1. How would changes in collection percentages affect the accounts receivable balance?
2. What if the company had significant bad debts; how would this impact cash collections?
3. How does the sales cycle timing impact cash flow management?
4. How would early payment discounts alter the collection schedule?
5. How might delayed payments influence the company’s liquidity in future months?

Tip: Always monitor your collection trends to predict and manage cash flow efficiently.