L$07-2$

Exercise $7-5$B Determining cash receipts from accounts receivable

Lingo Corporation is about to start a business as an agricultural products distributor. Because its customers will all be retailers, Lingo will sell its products solely on account. The company expects to collect $50$ percent of accounts receivable in the month of sale and the remaining $50$ percent in the following month. Lingo expects sales revenues of $$300,000$ in July, the first month of operation, and $$240,000$ in August.

Required

a$.$ Determine the amount of cash Lingo expects to collect in July.

b$.$ Determine the amount of cash Lingo expects to collect in August.