Aztec Company sells its product for $200 per unit. Its actual and projected sales follow.
| Units |
Dollars |
| April (actual) |
9,500 |
$1,900,000 |
| May (actual) |
2,400 |
480,000 |
| June (budgeted) |
6,500 |
1,300,000 |
| July (budgeted) |
7,000 |
1,400,000 |
| August (budgeted) |
3,600 |
720,000 |
All sales are on credit. Recent experience shows that 28% of credit sales is collected in the month of the sale, 42% in the month after the sale, 29% in the second month after the sale, and 1% proves to be uncollectible. The product's purchase price is $110 per unit. All purchases are payable within 13 days. Thus, 60% of purchases made in a month is paid in that month and the other 40% is paid in the next month. The company has a policy to maintain an ending monthly inventory of 20% of the next month's unit sales plus a safety stock of 115 units. The April 30 and May 31 actual inventory levels are consistent with this policy. Selling and administrative expenses for the year are $1,596,000 and are paid evenly throughout the year in cash. The company's minimum cash balance at month-end is $110,000. This minimum is maintained, if necessary, by borrowing cash from the bank. If the balance exceeds $110,000, the company repays as much of the loan as it can without going below the minimum. This type of loan carries an annual 12% interest rate. On May 31, the loan balance is $31,000, and the company's cash balance is $110,000. (Round final answers to the nearest whole dollar.)
Prepare a table that shows the computation of cash collections of its credit sales (accounts receivable) in each of the months of June and July.