Ellis Sport Shop projects the following sales: Seventy percent of Ellis' sales are on credit, with 60% of receivables collected in the month after the sale and the rest of receivables collected in the second month after the sale. February sales were $60,000, and March sales were $70,000. In the past, Ellis' bad debt percentage has been 0 and is expected to continue.
a) Prepare a monthly schedule of cash receipts for April-June.
b) What is the balance of receivables at the end of June?
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