Pitkins Company collects 20% of a month's sales in the month of sale, 70% in the month following sale, and 6% in the second month following sale. The remainder is uncollectible. Budgeted sales for the next four months are:
Budgeted sales
January $200,000
February $300,000
March $350,000
April $250,000
Cash collections in April are budgeted to be:
a) $321,000.
b) $292,000.
c) $320,000.
d) $313,000.