The owner of Office Furniture is concerned about cash management in the following two months, July and August 2021, and asked you to prepare a cash budget for these months. You have the following data and estimates for July and August:

	July	August
Cash sales	94,200	123,600
Credit sales	219,800	298,400
Purchases	162,000	216,000
Wages	51,400	55,200
Administration expenses (includes $10,000 for depreciation expense per month)	26,600	28,400
Selling expenses	35,000	38,000
Rent	4,000	4,000
Purchase of new equipment (cash)	16,500	150,000
Cash withdrawal by the owner	10,000	10,000

Collections from accounts receivable normally have the following pattern: 30% in the month of sale, 60% in the month following the sale, and 10% in the second month following the sale. Credit sales in May and June were $266,000 and $302,000 respectively. Purchases are paid 60% in the month of purchase and 40% in the month following the purchase. Purchases in June were $182,000. It is estimated that all items purchased each month are sold in the same month. Expenses are paid in the month they are incurred. Cash balance at the end of June: $26,500. The owner of Office Furniture requires a cash balance at the end of each month of $25,000.

a) Schedule of credit sales and receipts from accounts receivable in July and August. How much are the accounts receivable budgeted at the end of August? 

B) Prepare a cash budget for July and August (include all estimates separately).