James, Inc The Company Is in the Process of Preparing a Cash

James, Inc. makes a product that has peak sales in September of each year. The company has prepared a sales budget for the third quarter as shown below:
$\begin{array}{lc} \text { Month } &\text { Budgeted Sale. } \\\text { July } & \$ 200,000 \\\text { August } & 400,000 \\\text { September } & 600,000\end{array}$

The company is in the process of preparing a cash budget for the third quarter and must determine the expected cash collections by month. To this end, the following information has been assembled:
$\begin{array}{lr}& \text { Collections on Sales } \\\text { In month of sale } & 60 \% \\\text { In month following sale } & 25 \% \\\text { In second month following sale } & 15 \%\end{array}$
The company gives a 3% cash discount to customers paying in the month of their sale. The company charges 2% interest to customers who pay in the second month following their sales. The accounts receivable balance to start the quarter is $150,000: $35,000 from May's sales and $115,000 from June's sales.
Required:
Prepare a schedule of cash receipts for the third quarter.